Gold Futures Drop as China’s Inflation Jumps to Seven-Month High

Gold fell for the second time in three days as inflation in China topped economist estimates, increasing concern that officials may curb stimulus.

China’s inflation accelerated to a seven-month high in December, the National Bureau of Statistics said today. Bullion climbed 7 percent last year, a 12th straight gain, as central banks in Europe, the U.S. and China increased stimulus measures to boost economies. The Asian country is the world’s biggest bullion buyer after India.

“The market is reacting to China’s inflation numbers,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates, said in a telephone interview from Chicago. “Less liquidity in the system means a slowdown in purchases.”

Gold futures for February delivery dropped 1 percent to settle at $1,660.60 an ounce at 1:43 p.m. on the Comex in New York. Today’s decline is the biggest for a most-active contract since Jan. 4. Prices are still up 0.7 percent this week, ending a six-week slump.

Silver futures for March delivery declined 1.6 percent to $30.408 an ounce in New York.

On the New York Mercantile Exchange, platinum futures for April delivery fell 0.2 percent to $1,631.20 an ounce.

Palladium futures for March delivery slipped 0.1 percent to $701.45 an ounce.

To contact the reporter on this story: Maria Kolesnikova in London at Debarati Roy in New York at

To contact the editor responsible for this story: Steve Stroth at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.