QMX Gold Corp. (fka QMXGF)

[the cork]

1375.00 - Gold Declines in New York
on Concern That China May Raise Interest Rates
By Pham-Duy Nguyen and Nicholas Larkin - Dec 10, 2010 6:59 AM PT

Gold futures fell, heading for a weekly loss, as concern that China may tighten monetary policy eroded demand for precious metals. Silver, palladium and platinum also dropped.

China, the world’s second-biggest gold buyer, ordered lenders to park more money with the central bank for the third time in five weeks. Before today, gold climbed 27 percent this year, reaching a record $1,432.50 an ounce on Dec. 7.

“Gold is temporarily moving lower on China’s attempt to slow down its economy,” said Marty McNeill, a trader at R.F. Lafferty & Co. Inc. in New York. “A lot of the hot money has been going to China, so when it starts to break down, gold is going to get sold off with other commodities.”

Gold futures for February delivery fell $16.70, or 1.2 percent, to, $1,376.10 an ounce at 9:57 a.m. on the Comex in New York. A close at that price would leave the metal down 2.1 percent this week.

Gold assets in exchange-traded products fell 2.22 metric tons to 2,095.76 tons yesterday, according to data compiled by Bloomberg from 10 providers. Holdings reached a record 2,104.65 tons on Oct. 14. India’s is the leading bullion buyer.

Silver holdings gained 11.13 tons to 15,020.19 tons, the highest since at least February, data from four providers show.

Silver futures for March delivery fell 50.7 cents, or 1.8 percent, to $28.31 an ounce. On Dec. 7, the price reached $30.75, the highest since March 1980.

“Investors who view silver as a safe-haven asset are expected to continue buying large amounts over the next couple of years,” CPM Group, a New York-based research company, said yesterday in a report. The metal will be supported by industrial use, and China may account for 20 percent of global-fabrication demand this year, CPM said.

Palladium futures for March delivery slid $5.20, or 0.7 percent, to $736.40 an ounce on the New York Mercantile Exchange.

Platinum futures for January delivery declined $5.60, or 0.3 percent, to $1,673.30 an ounce, heading for the fifth straight drop.

http://www.bloomberg.com/news/2010-12-10/gold-may-gain-paring-weekly-decline-on-european-debt-contagion-concern.html