22
January
Gold remains under pressure after Obama proposal
22 January 2010 Reuters
Gold remained under pressure on Friday as President Barack Obama's plans to limit financial risk taking raised concerns about diminishing capital flows from banks, which have provided liquidity for gold and commodities investors.
Stock markets across Asia fell around 2 percent on Friday, after U.S. shares suffered their worst one-day percentage drop since October on Thursday, while commodities continued their broad slide.
"Obama's proposal to restrict banks' risk taking is the latest factor adding to recent market concerns about liquidity leaving the market, following worries about China's tightening policy that emerged this month," said Shuji Sugata, a manager at Mitsubishi Corp Futures Ltd.
