Daily Gold Update

Source: Marketwatch

New York— Most metals finished lower on Tuesday, as fresh moves by China to curb lending fueled concerns over lower demand from the world's fastest growing economy, sent investors fleeing to the safety of the dollar, reducing the relative value of hard assets. Gold futures, however, traded higher as investors took fresh positions in the April contract and tracked gains in stocks on Wall Street, which rebounded after a report showed consumer sentiment improved in January.

"Base metals [fell] after China implemented a clampdown on lending," the metals team at Royal Bank of Canada said in a note. Among other metals, copper for March delivery fell 5.3 cents, or 1.6%, to $3.34 a pound. China's central bank singled out several large Chinese banks and required them to raise their reserve ratios for excessive lending, while also asking some not to issue new loans, according to reports Tuesday. That suggested the government is taking steps to cool the red-hot pace of the nation's loan growth. See full story.