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Week 45 Gold Market Recap: Chinas Gold Market Embraces Beneficial Tax Reform Amidst Intense Market Volatility

2025-11-07 10:57:40 | 浏览 144

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Market Volatility and Persistent Safe Haven Demand

The global gold market experienced significant fluctuations this week, with prices oscillating around the key $4,000 per ounce level, reflecting the fierce battle between bullish and bearish forces. Despite a technical correction in the short term, gold’s status as a safe haven asset in times of global economic uncertainty remains intact, and investor demand for its value preservation and risk hedging functions persist.

Chinese Tax Reform Drives Market Standardisation and Structural Optimisation

Starting November 1, China officially implemented revised gold tax policies, applying differentiated VAT rates to investment and non-investment gold. The increased tax burden on non-investment gold products such as jewelry has led to price hikes, impacting traditional jewelry markets and prompting liquidity to concentrate within exchanges to improve transparency and market discipline. This tax reform also promotes further standardisation and healthy development in the investment gold market.

Notably, the reform has fueled a surge in Contract for Difference (CFD) gold trading, which, due to the absence of physical delivery, enjoys VAT exemptions. Hong Kongs tax advantages and mature fintech platforms have attracted domestic and international investors, making it a preferred diversification channel. Readers are encouraged to explore the detailed insights in The Gold Tax Reform Boosts CFD Popularity: How Should Investors Seize New Opportunities?-Upway Global for investment opportunities under the tax reform.

Fed’s Hawkish Tone and US Political Gridlock Impact Gold Market

Federal Reserve Chair Jerome Powell has signaled a hawkish stance, noting that a December rate cut is not guaranteed, dampening market expectations for easing. Supported by strong private employment data, the dollar rebounded, exerting downward pressure on gold. Meanwhile, the ongoing government shutdown and political stalemate, exacerbated by intense electoral battles among Democrats and Republicans including influence from former President Trump and gubernatorial elections, have prolonged the shutdown, disrupted public services and economic operations, and increased market uncertainty. This political turmoil has bolstered investor-safe-haven demand for gold. Consequently, despite dollar strength weighing on prices, political instability continues to sustain golds appeal.

Geopolitical Tensions and Central Bank Gold Purchases Support Long-Term Fundamentals
Persistent geopolitical tensions and continued gold purchases by various central banks as a risk hedge provide solid long-term support for gold prices. Slowing global economic growth, inflationary pressures, and divergent monetary policies reinforce gold’s significance as a key asset allocation choice.

Key Financial Events to Watch Next Week

Next week, global markets will focus on the release of the US nonfarm payroll report on November 8, a critical indicator for assessing economic health and monetary policy direction, expected to cause significant market volatility. Additionally, the US Consumer Price Index (CPI) will be reported next week, offering vital insights into inflation and influencing Fed policy decisions. Multiple Federal Reserve officials are scheduled to speak, elaborating on the policy outlook and impacting the gold market. Furthermore, ongoing US-China trade negotiations and global macroeconomic data releases will present new trading opportunities and risk signals. Investors are advised to closely monitor these developments, plan, and adjust strategies flexibly to navigate market fluctuations.

Upway Global: At the Forefront of Gold Trading and Market Excellence

As one of the elite members of the Hong Kong Gold Exchange (HKGX) with AA operation status (Membership No. 084) and a core member of the Bullion Group, Upway Global was recently awarded the prestigious "Authorised Good Delivery Bars Minter" certification—the highest standard in refining and delivery of physical gold bars, confirming its capability to produce gold bars that meet international purity and quality standards. This recognition signifies Upway Global’s commitment to upholding industry-leading professionalism and integrity while reinforcing Hong Kong’s position as Asia’s global gold trading hub.

Demonstrating robust market strength, Upway Global’s daily transaction volume recently surpassed USD 80 billion, setting a record and underscoring its role as a market leader. With over 1.2 million active traders and a cumulative order volume exceeding 600 million, Upway Global continues to foster a trading ecosystem characterised by transparency, security, and efficiency. The company’s average monthly trading volume in 2025 exceeded USD 506 billion, making it the top performer on the HKGX platform.