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19th October 2010, 06:08 AM
NEWS ALERT - Gold falls as China rate move boosts US dollar
By Clara Denina - Correspondent, clara.denina@fastmarkets.com (+44 (0)20 7929 6339)
London 10/19/2010 - Gold prices, steady initially, fell back during late European trade when the US dollar strengthened after China said it will raise its benchmark deposit and lending rates by 25 basis point, a sign of monetary tightening.
Spot gold fell $9.80 to a session low of $1,360 per ounce at one stage. On the charts, having broken through first support level of $1,363, the metal’s next downside target is now $1,352.90.
The US dollar rose to 1.388 versus the euro after the People’s Bank of China (PBOC) said in a statement it will raise the one-year yuan lending rate to 5.56 percent from 5.31 percent, and the one-year yuan deposit rate to 2.5 percent from 2.25 percent, effective from tomorrow.
By Clara Denina - Correspondent, clara.denina@fastmarkets.com (+44 (0)20 7929 6339)
London 10/19/2010 - Gold prices, steady initially, fell back during late European trade when the US dollar strengthened after China said it will raise its benchmark deposit and lending rates by 25 basis point, a sign of monetary tightening.
Spot gold fell $9.80 to a session low of $1,360 per ounce at one stage. On the charts, having broken through first support level of $1,363, the metal’s next downside target is now $1,352.90.
The US dollar rose to 1.388 versus the euro after the People’s Bank of China (PBOC) said in a statement it will raise the one-year yuan lending rate to 5.56 percent from 5.31 percent, and the one-year yuan deposit rate to 2.5 percent from 2.25 percent, effective from tomorrow.