Gold futures on the COMEX Division of the New York Mercantile Exchange reached new highs on Wednesday, lifted by a weaker U.S. Dollar and rising inflationary expectations, as investors flocked to the precious metal to hedge the weakening greenback and inflation. Silver and platinum both surged.

The most active gold contract for December delivery surged 23.8 dollars, or 1.8 percent, to finish at 1,370.5 dollars per ounce. Earlier, the price reached an all-time high of 1,375.7 dollars per ounce, easily surpassing its previous record of 1,366 dollars.

Although the bullion came under pressure on Tuesday as profit- taking emerged after successive days of gains, it found support and bounced off lows after the minutes of the Federal Reserve meeting emphasized their concerns that an already faltering economy could lose further momentum, indicating that the Fed is set to pump more money into the system.

Gold accelerated gains as the U.S. dollar index slid 0.38 percent to 77.07 on Wednesday, making dollar-priced gold cheaper for holders of other currencies.

A trader noted that the bullion’s strong rally also triggered stop loss buying and attracted investors who dumped gold at record prices to jump back in the market.

December silver surged 78.5 cents, or 3.4 percent, to 23.932 dollars. January platinum climbed 24.1 dollars, or 1.4 percent, to 1,707.4 dollars per ounce.

Learn Chinese, Learn mandarin, Learning Materials, Mandarin audio lessons, Chinese writing lessons, Chinese vocabulary lists, About Chinese characters, News in Chinese, Go to China, Travel to China, Study in China, Teach in China, Dictionaries, Learn Chinese Painting, Your name in Chinese, Chinese calligraphy, Chinese songs, Chinese proverbs, Chinese poetry, Chinese tattoo, HSK, HSK exam, Chinese Exam Preparation, China Business, China Travel, Mandarin Phrasebook, Chinese editor, Pinyin editor, China Travel, Travel to Beijing

South Korea’s central bank on Thursday decided to leave the key interest rate at the current level of 2.25 percent for the third straight month, in contrast with wide market forecasts it would revise up the rate.

In its monthly rate setting meeting, the Bank of Korea (BOK) reached a decision to keep the rate at the status quo mainly due to lingering concerns on a global recovery and recent turmoil in financial markets.

“The Monetary Policy Committee of the Bank of Korea decided to maintain the Base Rate at its current level (2.25 percent) for the intermeeting period,” the BOK said in a press release.

Upon the decision, the BOK noted a difference in economic recovery pace between emerging and advanced countries, particularly paying attention to a slow-down in the U.S. recovery.

“Looking ahead, there exists the possibility of the heightened volatility of economic activity and exchange rates in major countries acting as a risk factor for the global economy,” the central bank said.

The domestic economy, however, was diagnosed to be in relatively good shape, expected to continue on an upward track, even in the presence of external risk, together with improving labor market conditions.

With respect to inflationary pressure, the BOK pointed to the recent sharp hike in farm product prices, also warning against upward pressures on the demand side down the road.

In the real estate market, however, housing sales prices have shown a declining trend in Seoul and its surrounding areas, the BOK said.

The financial market factor rose as a key issue, with stock prices soaring, the local currency sharply hiking, and market interest rates plunging, which came in response to massive inflow of foreign capital, the BOK explained.

According to the BOK, mortgage lending has also widened due to the increase in the numbers of newly occupied apartments, despite a drop in house transactions.

“Looking ahead, the Committee will conduct monetary policy in such a way as to help the economy maintain price stability, while sustaining sound growth under the accommodative policy stance,” the central bank said, vowing to take overall account of financial and economic conditions at home and abroad as they carry out monetary policies.

In July, the BOK abruptly conducted the first rate increase by lifting the rate to 2.25 percent from a record low of 2 percent, ending the long-kept rate freeze for sixteen straight months, in a bid to preemptively tackle inflationary pressure.

The BOK, with its governor continuously focusing on the need to further slow down inflationary pressure, was widely expected to further lift the rate in September, but disappointed the market by leaving it at the status quo.

Learn Chinese, Learn mandarin, Learning Materials, Mandarin audio lessons, Chinese writing lessons, Chinese vocabulary lists, About Chinese characters, News in Chinese, Go to China, Travel to China, Study in China, Teach in China, Dictionaries, Learn Chinese Painting, Your name in Chinese, Chinese calligraphy, Chinese songs, Chinese proverbs, Chinese poetry, Chinese tattoo, HSK, HSK exam, Chinese Exam Preparation, China Business, China Travel, Mandarin Phrasebook, Chinese editor, Pinyin editor, China Travel, Travel to Beijing

Japan’s wholesale prices dipped 0.1 percent in September from a year earlier, the Bank of Japan said in a report on Thursday.

The reading of Japan’s corporate goods price index (CGPI) stood at 102.8 in the recording period, marginally below economists expectations for a flat reading.

On month, the CGPI was largely unchanged, matching both expectations and the previous month’s revised reading.

Export prices were down 0.5 percent on month and 5.0 percent on year, while import prices eased 0.1 percent on month but added 2.8 percent on year, the central bank’s report stated.

On a quarterly basis, prices were down 0.2 percent on quarter and 0.1 percent annualized, also with an index score of 102.8, the BOJ said.

The central bank’s overseas commodity index, a gauge of costs of materials including oil, steel, copper and wheat, rose 23.6 percent in September from a year earlier, compared with an 8.7 percent increase in August.

The index had been rising more than 50 percent in the first four months of 2010.

The CGPI measures prices for goods purchased by Japanese corporations and as prices for input materials and the overall cost of manufacturing change, Japanese companies adjust retail prices accordingly.

The CGPI in Japan comprehensively tracks these supply-side price pressures and decreases in the index often precede downward movement in the CPI.

If a decrease in the CGPI is followed by a fall in the CPI, concerns about deflation may prompt the BOJ to cut interest rates.

BOJ policy makers last week pointed to the yen’s strength as a reason to expect a dip in producer prices, when it downgraded its economic assessment in its monthly report.

The central bank also cut the target for the benchmark interest rate for the first time since 2008 and created a 5 trillion yen ( 61 billion U.S. dollar) fund to buy assets and expand its balance sheet.

“It’s too early to assume the BOJ’s measures can work effectively to beat deflation and stop the yen’s appreciation,” Eiji Dohke, chief Japanese government bond strategist at Citi Group Global Markets Japan Inc. in Tokyo, said before the report. “The BOJ will probably implement additional action as early as November.”

In addition the BOJ may forecast a fall in core consumer prices for the fiscal year from next April in its twice-yearly outlook report instead of a currently projected rise, local media reported recently.

In July, the BOJ said the core consumer price index (CPI) excluding fresh food prices is expected to rise 0.1 percent in 2011/12 — the first increase in three years.

However the central bank is likely to revise down this forecast to flat or negative when it releases the semiannual report on Oct. 28, local media said, citing informed sources.

The BOJ is also likely to lower its growth forecasts to between 2 percent and 2.5 percent from 2.6 percent for the current year and to between 1 percent to 1.5 percent from 1.9 percent for 2011/ 12, sources familiar with the matter said.

The BOJ releases its price and growth forecasts in April and October and reviews them in July and January.

The BOJ has been prompted to revise down its forecasts as the slowing U.S. economy and the yen’s rise have clouded the economy’s outlook.

A delay in Japan’s escape from deflation means the central bank will need to keep the policy rate virtually at zero percent for an extended period of time, local media said.

As the most important indicator of deflation, CPI figures are closely followed by the BOJ.

Sinking consumer prices may prompt the BOJ to lower interest rates in order to manage inflation and slow economic growth.

Lower interest rates make holding the yen less attractive to foreign investors, and this lower level of demand will place downward pressure on the value of the yen, which recently has hit 15-year highs against the U.S. dollar and is severely hampering Japan’s export-led economic recovery.

Learn Chinese, Learn mandarin, Learning Materials, Mandarin audio lessons, Chinese writing lessons, Chinese vocabulary lists, About Chinese characters, News in Chinese, Go to China, Travel to China, Study in China, Teach in China, Dictionaries, Learn Chinese Painting, Your name in Chinese, Chinese calligraphy, Chinese songs, Chinese proverbs, Chinese poetry, Chinese tattoo, HSK, HSK exam, Chinese Exam Preparation, China Business, China Travel, Mandarin Phrasebook, Chinese editor, Pinyin editor, China Travel, Travel to Beijing