13
December
Gold May Drop as Concern China to Extend Tightening Measures Cuts Demand
13 December 2010 Bloomberg.com
Gold gained in London as investors sought a protection of wealth from Europe’s debt woes and as China’s decision to hold off raising interest rates may boost demand.
China, which last week raised reserve-requirement ratios for banks by half a percentage point, didn’t increase interest rates this weekend even after consumer prices climbed at the fastest pace in more than two years in November. The euro was little changed against the dollar amid signs of division among European governments over how to stem the region’s debt crisis.
