Declines Tempered by Signs That Inflation Picking Up in U.S.
Gold futures ended lower on Thursday as investors weighed news of potentially illegal gold-backed loans in China and signs that inflation was picking up in the U.S.
The most actively traded contract, gold for August delivery, fell $5.60, or 0.4%, to settle at $1,317.00 a troy ounce on the Comex division of the New York Mercantile Exchange.
Chinese officials uncovered 94.4 billion yuan ($15.2 billion) of loans tied to potentially illegal gold financing deals leading back to 2012. China's National Audit Office said in a report that a check among 25 gold processors found a large volume of improper gold-backed loans designed to profit from interest-rate and foreign-exchange differences. The office didn't disclose who was involved in the loans, how they were structured or what made them improper.
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The miners have started 2014 very well indeed on the back of rising gold prices, so the question is; is this the real deal or another head fake? Is the bottom really in? Could there be a final capitulation just ahead of us? Will the summer doldrums take the PMs lower?
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