TSX:SGR.UN - Post by User
Post by
hydra100on Dec 27, 2010 5:29am
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Post# 17896602
CHINA
CHINASpot gold fell nearly 1 pct after China's interest rate hikeRujun Shen, SINGAPORE - 27.12.2010
Spot gold fell nearly one percent on Monday, and other precious metals also declined, after China raised interest rates over the weekend.
On Saturday China's central bank raised interest rates for the second time in just over two months, underscoring concerns that inflation may be entrenched and swift action is needed to get price pressure under control.
Spot gold fell to a one-week low of $1,371.1, before recovering to $1,373.35 an ounce by 0004 GMT, down 0.8 percent from the previous close.
U.S. gold futures shed 0.4 percent to $1,374.4.
Spot silver fell 1.4 percent to $28.81, and touched a one-week low of $28.75.
Spot platinum declined one percent to $1,706, and spot palladium also fell one percent to $745.5.
China's rate hike is likely to weigh on commodity market on Monday. Commodities have been riding on inflation anticipation in China, a key market for nearly all commodities