Gold retreats from one-month high as China tightens monetary policy

 @ibtimes
on January 13 2010 3:19 AM

FXstreet.com (Barcelona) - Gold prices have retreated from one-month high around $1,160 on Monday and Tuesday, as the People's Bank of China increased its banks' reserves requirements, in order to curb lending.

XAU/USD moved on Tuesday from $1,5838 high, to $1,125 low, and has remained consolidating, during Wednesday's Asian session, in a range between $1,125 and 1,132.50.

AUD/USD did also drop on Tuesday, extending retreat from one-month high at 0.9325, to 0.9070 low on Tuesday's U.S. session, although the pair managed to pick up during Asian trade, reaching levels around 0.9240 at the moment of writing.

The People´s Bank of China announced on Tuesday its decision to raise its banks reserves requirements by 0.5%, a move, taken by the market as a signal of a move towards a tighter monetary policy.

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