International News
Chow Tai Fook Posts Soft Earnings as China’s Gold Tax Shift Clouds Outlook
Flat profits and tighter margins signal rising pressure on China’s biggest jewellery retailer after Beijing ends a key gold tax rebate.
Chow Tai Fook Jewellery Group reported a muted performance for the first half of the fiscal year, with profits landing just below expectations as the industry braces for the impact of China’s recent policy change on gold taxation. The retailer posted HK$2.5 billion in net income, marginally short of analyst forecasts of HK$2.6 billion, according to its latest filing.
While gross margin eased to 30.5%, the company noted that stronger sales of higher-margin fixed-price jewellery and the appreciation of gold helped offset the pressure. In mainland China, average selling prices for fixed-price gold pieces continued to rise, supported by Chow Tai Fook’s ongoing premiumisation strategy amid fierce competition from domestic rivals such as Laopu Gold.

The jewellery giant has been navigating a tough landscape shaped by volatile gold prices, softer consumer sentiment, and a fast-evolving competitive environment. Despite these challenges, the company said it remains optimistic about sustaining momentum through the second half of FY2026.
However, uncertainty looms after China eliminated a long-standing tax rebate on gold imports on Nov. 1, a move aimed at shoring up government revenues. The change is expected to raise gold acquisition costs and could squeeze retailer margins further if passed on to consumers.
Chow Tai Fook has already revised certain product prices to reflect rising gold rates. Even so, its stock has rallied strongly, climbing 127% year to date, signalling investor confidence despite near-term industry turbulence.
International News
Elevated rate cut expectation boosts precious metal prices AUGMONT BULLION REPORT
- Gold and silver rose to over two-week highs, as the dollar declined and the opportunity cost of storing bullion decreased due to predictions of a looser US policy. Three more cuts are expected before the end of 2026, and markets currently price in an 85% chance of a 25-bps cut in December, a significant increase from approximately 30% a week ago.
- When assessing the direction of rates, traders continue to give priority to the wider run of weak demand indicators and dovish Fed commentary because the economic data mix was uneven but still consistent with policy easing. Initial jobless claims were surprisingly lower, and durable goods orders came in stronger despite other readings signaling cooling.
- Reports that Kevin Hassett, the director of the White House National Economic Council, is the front-runner to be the next chair of the Federal Reserve raised expectations because investors believe that Hassett will support President Donald Trump’s desire for lower interest rates.
Technical Triggers
- Gold has again attempted to touch $4200 (~Rs 126,000) resistance of its rangebound momentum. Prices would need a solid trigger for prices to climb above $4200, if it does, next resistance would be $4245 (~Rs 127,800). If it doesn’t, then prices can fall back to $4100 (~Rs 123,000).
- Silver has again attempted to touch the resistance zone of $53.5-54 (~Rs 161,000-162,000), if it sustains, we can see rally towards $56 (~Rs 170,000). If it doesn’t sustain and rebounds back, we can see profit-booking towards $50 (~Rs 153,000).
Support and Resistance
| Commodity | Support Level | Resistance Level |
|---|---|---|
| International Gold | $4100/oz | $4200/oz |
| Indian Gold | ₹123,000 / 10 gm | ₹127,000 / 10 gm |
| International Silver | $50/oz | $54/oz |
| Indian Silver | ₹153,000 / kg | ₹162,000 / kg |
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