New York gold futures closed up 1% Monday

New York gold futures rose on Monday due to China's central bank did not choose to raise interest rates, eliminating the market to the global economic growth is likely to worries about a sudden halt. At the same time, investors speculated the Fed will at the next policy meeting decided to support its "quantitative easing" policy, but also support the formation of the gold market.

Day, the New York Mercantile Exchange (NYMEX) under the Commodity Exchange (COMEX) next February delivery gold futures closed up $ 13.1, $ 1,398 an ounce, or 1%, after the contract had hit $ 1,400 an ounce. In Friday's trading, as investors worried that China's central bank may raise interest rates last weekend's sake, New York gold futures fell 0.6%.

Last weekend, the data from China show that price pressures are still great, prompting investors to buy gold futures to hedge against inflation risk. However, China's central bank has not decided to raise interest rates at the weekend, which reduce the market's growth rate may slow down the global economy, fears.

CIBC World Market (CIBC World Markets) in Toronto, a senior economist and commodities strategist Peter - Pakistan Buchanan (Peter Buchanan) said: "There is no bad news would be tantamount to good news. People had expected the central bank will will raise interest rates, and indeed raised the bank deposit-taking financial institutions of RMB deposit reserve ratio, but the market is not too great importance to this. "

As many of the world's largest consumer of raw materials and production, China's demand growth is considered the main driving force of global resources.

Pakistan Buchanan also noted that the Fed is likely to be held on Tuesday monetary policy meeting, the acquisition of 600 billion U.S. dollars of its debt in the second round of "quantitative easing" policy support, and may take more measures to stimulate the economy growth.

The so-called "quantitative easing" (Quantitative Easing), is a concept first proposed in Japan, the economic malaise, a sharp contraction of bank credit in the context of the Bank of Japan from March 2001 to the beginning of the zero interest rate (overnight loans between banks interest rate) policy, further deepening of its content by the central bank to the banking system to provide sufficient liquidity in order to encourage borrowing and stimulate economic recovery.

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