NEW YORK (Commodity Online) : Gold and oil prices fell for the weekend close in New York mainly on concerns over economic slowdown as China prepared to fight its soaring inflation. Light sweet crude for delivery in December, dropped 34 cents to close at $81.51 per barrel while Gold futures for December delivery lost 70 cents to settle at $1,352.30 on the Comex in New York. Brent North Sea crude for January lost 71 cents to settle at $US84.34 a barrel in London trade while Silver futures for December delivery rose 34.5 cents, or 1.3 per cent, to $27.179 an ounce. Analysts said investors worried that China would take more steps to fight inflation and the resultant slow growth may erode demand for precious metals and raw materials. Gold has dropped 5.1 per cent from a record $1,424.30 an ounce on Nov. 9. However, it has jumped 23 per cent in 2010, heading for the 10th straight annual gain. China ordered banks to set aside larger reserves for the second time in two weeks. The country is the biggest bullion consumer after India. The country’s inflation rate rose to a two-year high last month. Surging demand in China, the world’s biggest user of many commodities, lifted the CRB index by more than 50 per cent since 2001. China's central bank announced it would rise at the end of the month the amount of money that lenders must keep in reserve as the world's second-largest economy struggles to tackle soaring inflation and housing costs. The People's Bank of China said the reserve ratio would be raised by 50 basis points, effective November 29, in the fifth hike this year and the second this month. China bought 153.7 metric tons of the precious metal in the third quarter, according to the producer-funded World Gold Council. India purchased 229.5 tons. Silver futures for December delivery rose 34.5 cents, or 1.3 per cent, to $US27.179 an ounce. The metal has climbed 61 per cent this year. Palladium futures for December delivery rose $US8.20, or 1.2 per cent, to $US703.70 an ounce on the New York Mercantile Exchange. The price has surged 72 per cent this year. Platinum futures for January delivery added $US7.20, or 0.4 per cent, to $US1,671.10 an ounce. The metal has gained 14 per cent this year.

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