Commodities Decline on Speculation China Will Tighten Policy
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Commodities dropped on speculation that China, the biggest consumer of everything from aluminum to zinc, will increase borrowing costs and after the country’s exchanges increased margins to curb speculation.
The Thomson Reuters/Jefferies CRB Index of 19 raw materials dropped 0.4 percent to 301.11 as of 2:39 p.m. in New York, led by cotton, silver and coffee. Gold futures for February delivery fell 0.8 percent, the most since Nov. 16, and palladium slumped as much as 4.5 percent.