Chinese Inflation Pounds Gold, Silver; New Lows Seen

Gold and Silver prices gave back nearly all of their prior day's rally and the dollar and yen slid further Friday after China reported inflation accelerated in December. Rising inflation reduces the certainty of more economic stimulus, which traders see as a catalyst for driving precious metals prices higher. Spot gold prices lopped off 0.88% intraday to $1,661 an ounce, giving back the prior session's gains. SPDR Gold Shares (GLD), tracking a 10th of an ounce of bullion, tumbled 0.79% to 160.70. Market Vectors Gold Miners ETF (GDX) shed 0.07% to 45.38. "Gold and silver appear to be falling with materials generally, trading more like commodities than precious metals, on negative global economic news," Tom Winmill, manager of Midas Fund , said in an email.
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