Gold Holds Near $4,000 After China Ends Tax Break for Retailers

Gold hovered around $4,000 an ounce as traders assessed an end to China’s long-standing tax rebate for some retailers that could weigh on demand in one of the world’s largest precious-metals markets.

Bullion for immediate delivery was little-changed during US hours after earlier falling as much as 1%. Beijing announced Saturday that it would no longer allow some retailers to offset a value-added tax fully when selling gold they bought from the Shanghai Gold Exchange and Shanghai Futures Exchange. The news sent Chinese gold jewelry stocks tumbling.