Gold Futures Fall Over China Worries
January 27, 2010 10:41 AM
Gold futures fell on Wednesday, as investors remained worried about China's monetary policy.
China has been making moves, such as reigning in bank lending, to slow down its economy and prevent inflation.
Because China is one of the biggest importers of many commodities, its monetary policy has a dramatic effect on many commodities prices.
Gold for February delivery, the most actively traded contract, dropped $6.60, or 0.6%, to $1,091.70 an ounce in electronic trading on Globex. It reached an intraday low of $1,090.60 an ounce.
"The gold market is still being hurt by indications of slightly tighter monetary policy in China," said James Steel, gold analyst at HSBC in New York. "This year Chinese monetary changes seem to be gaining an influence in gold. We're not only looking at the Fed as we used to."
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