Nick Godt & Polya Lesova
Friday, February 12, 2010
NEW YORK (MarketWatch) — Gold and other metals futures slumped on Friday, as a move by China to slow lending triggered a rally in the U.S. dollar and a sell-off in commodities.
Gold for April delivery, the most actively traded contract, dropped $9.90, or 0.9%, to $1,084.80 an ounce in electronic trading on Globex.
A batch of mixed U.S. economic data failed to stem the tide of selling in commodities, with crude oil sliding 2.4% and copper futures off 2%.
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While U.S. retail sales rose in January and business inventories were slimmer in December, a survey found consumer more pessimistic about the economy in February.
Heavy selling pressure was seen in Asian trade after the People’s Bank of China said it will raise the ratio of reserves banks must set aside by 0.5 percentage points, the second such move this year. Following the news, the U.S. dollar rallied against its major rivals, while stock futures and commodities fell. See China lifts reserve ratio.
This article was posted: Friday, February 12, 2010 at 10:04 am