(Kitco News) - Comex gold futures prices are trading solidly lower Friday morning, on news that China has once again tightened its monetary policy and on a continued easing of investor worries over the European Union's overall financial condition. February Comex gold last traded down $21.50 at $1,365.50 an ounce. Spot gold last traded down $8.40 at $1,366.00.

News reports overnight said Chinese monetary authorities raised the reserve requirement ratio for banks by 0.5%, to 19%, in an effort to reduce borrowing and cap inflationary pressures in the world's most populous nation. The China news is not unexpected, as similar moves have occurred the past few months. However, the commodity market sector, in general, does view any efforts by China to squelch its demand for commodities as bearish.