Gold Little Changed After Rate Hike


"Gold price rebounds from China's Christmas Day interest-rate hike."

Gold prices were steady Monday morning in New York, rebounding from modest losses in the wake of China's Christmas Day interest rate hike.

The most heavily traded gold contract was flat at $1,380.50, having seen little movement in relatively quiet trading.

The People's Bank of China announced that it is upwardly revising interest rates by 25 basis points. The revised rates will largely address concerns about inflation and forming bubbles in the real estate market. Meanwhile, silver slipped to a one-week low of $28.75 an ounce, while platinum and palladium prices were fractionally higher compared the previous session.

The dollar was down versus the euro and yen, giving gold prices a bit of a lift. There is no major economic data due from the United States today.

Several markets remain closed for the holidays, including Australia, the UK and Canada.

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