Daily Gold Update

Source: Marketwatch

New York— Gold futures, along with those of industrial metals such as copper, fell sharply Wednesday on concern that China might further tighten its lending and slow demand from the world's fastest-growing economy. Gold for February delivery finished the session down $27.40, or 2.4%, at $1,112.60 an ounce on the New York Mercantile Exchange. Copper for March delivery fell 8.7 cents, or 2.5%, to $3.36 a pound.

The China Banking Regulatory Commission has asked several commercial banks to stop issuing new loans for the rest of January, the state-run China Securities Journal reported, citing several sources. "Chinese emergency measures which came into being were one of the things that jump-started the global economy, any suggestion they will end, and some people will think it hurts stock market's immediate prospects," said Chris Palmer, head of global emerging markets for Gartmore in London. China's Shanghai Composite dropped 2.9%, with the shares of many mining and metals firms taking a hit. See full story.