Chinese Inflation Data Keeps Lid on Gold, Silver

(Source:GoldAlert.Com) China’s inflation rate remained north of 5% in April, indicating that additional monetary tightening may be required to cool economic growth in the nation.The stronger than expected Chinese inflation data helped keep a lid on precious metals, as gold dipped $3.02 to $1,513.20 and silver slid $0.61 to $37.89 per ounce.Chinese consumer prices increased 5.3% in April on a year-over-year basis, surpassing the government’s full-year target of 4%. The gain also came in above the 5.2% consensus estimate among economists.Equity markets in China sold off on the inflation data, while U.S. equity markets looked to open near the flatline. The U.S. Dollar Index rose 0.2% to 74.70 this morning.
Source link:http://www.goldalert.com/2011/05/chinese-inflation-data-keeps-lid-on-gold-silver/