Gold, silver rise on global inflation concerns

Bloomberg reports that gold and silver prices rose Tuesday after China increased interest rates to curb inflation and slow economic growth.

The market news is quoted as saying:

This is the third time China has raised interest rates since October. Its inflation rate hit a 28-month high of 5.1 percent in November before moderating in December. Government leaders fear a sharp rise in prices for things like food and fuel could trigger unrest.

The decision is prompting more investors to buy gold and silver because of concerns about inflation, said Dave Meger, vice president of metals trading at Vision Financial Markets.

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