Gold fluctuates on mixed news

News is all about interest rates. China govt announced tonite that it will increase the leading rate of central bank from 5.58% to 5.85%, effective tomorrow, for the sake of slowing down the boom of credit and investment in the mainland. This affects the global market and gold drops by nearly $10 after the news to $630.

Whereas Bernanke reveals tonite "policy-makers could at some point pause in their 22-month credit-tightening campaign". It is a strong proof that the interest hike will top very soon, if not stop immediately. This brings good news to stock and commodity market. Gold bounce back and testing $640 again during US morning session.