Gold slipped back under $4,000 an ounce after China scrapped a long-standing tax rebate for certain retailers — a move that may dampen demand in one of the world’s biggest precious metals markets.

Spot gold fell as much as 1% in Asian trading on Monday. Beijing announced on Saturday that retailers will no longer be allowed to offset value-added tax on gold purchased from the Shanghai Gold Exchange or Shanghai Futures Exchange, whether sold directly or after processing.