
Gold Surges as China Eases Lending Rates
NEW YORK (
) --
were popping on Monday morning as the U.S. dollar slipped and China signaled a shift in lending practices.
Gold for August delivery at the COMEX division of the New York Mercantile Exchange was surging $28.40 to $1,321.30 an ounce. The
traded as high as $1,325 and as low as $1,297.40 an ounce, while the spot price was adding $9.42.
The People's Bank of China removed control of interest rates on loans offered by the nation's financial institutions.
"Seems like anybody can go out and get smaller denominated loans, and what that's going to do is that's going to start pumping some money back into the
Chinese system," Phil Streible, senior commodities analyst at RJO Futures,
. Streible said this action is slightly inflationary, which is why gold continues to move up.
for September delivery were gaining 81 cents to $20.27 an ounce, while the
was dropping 0.39% to $82.31.
Gold mining stocks were strengthening on Monday. Shares of
NovaGold Resources
(NG) - Get Report
were climbing 5.8%, and shares of
Eldorado Gold
(EGO) - Get Report
were jumping 5.5%.
Among volume leaders,
Barrick Gold
(ABX)
was increasing 4.7%.
Gold ETF
SPDR Gold Trust
(GLD) - Get Report
was up 2.2%, while
iShares Gold Trust
(IAU) - Get Report
was tacking on 2.3%.
-- Written by Joe Deaux in New York.
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