Gold (XAUUSD) Drops Back Below $4,000 After China Ends Tax Incentive

Gold dropped below $4,000 an ounce after China ended a long-standing tax rebate for some retailers, a change that could hurt demand in one of the largest precious-metals markets.

Bullion fell as much as 1% in Asia on Monday. Beijing announced Saturday that it would no longer allow some retailers to offset a value-added tax when selling gold they bought from the Shanghai Gold Exchange and Shanghai Futures Exchange, whether sold directly or after processing.