Monday, December 27, 2010

Gold Silver, platinum & palladium fall after China rate rise

Dec 26 (Reuters) - Spot gold prices dropped by almost 1 percent on Monday after China raised interest rates on Christmas Day, the latest in a series of measures to cool inflation which is running at its highest in over two years.

Gold dipped to $1,373.20 an ounce early on Monday, from Friday's notional close of $1,384.25. By 2324 GMT, gold stood at $1,375.10.

China's central bank raised interest rates on Saturday for the second time in just over two months as it stepped up its battle to rein in stubbornly high inflation.

Dec 27 (Reuters) - Spot silver fell 1.2 percent to $28.86 an ounce, and spot platinum also fell 1.2 percent to $1,701.49 an ounce by 2341 GMT, after China raised interest rates on Christmas Day.

Spot palladium declined nearly one percent to $746 an ounce.

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