Gold prices dipped slightly after China ended its tax discount on precious metal purchases, but analysts see this as a healthy adjustment rather than a setback. The policy change reflects China’s efforts to stabilize its economy and strengthen fiscal balance, and markets view it as a sign of normalization rather than weakness.
Despite the short-term drop to around USD 4,000 per ounce, confidence in gold remains strong. Futures prices have already started to recover, and major institutions such as the London Bullion Market Association (LBMA) and Société Générale forecast that gold could climb toward USD 5,000 in the coming years.
In other words, this brief pullback may simply be the market catching its breath before the next leg up — a positive sign of a resilient and steadily growing gold market.
