China’s Latest Move to Control Inflation Pushes Gold Prices Down

Kitco’s Jon Nadler points to China as the catalyst for gold’s recent price chopping.

The editorial is quoted as saying:

The PBOC announced that it has once again requested the country’s banks to hold higher amounts of deposits in the wake of recent revelations that foreign-exchange holdings and lending activity moved to higher levels. Mr. Hu is keen on slaying the inflation dragon. The 50 basis point move (the fourth in sixty days) underscores the Chinese leadership’s resolve to pull the rug out from under the inflation bogey. However, any such tightening move has become a bogey of its own to hitherto partying-like-there-is-no-tomorrow (there always is) commodities’ players.

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