With the increasing importance of China as a global player, their decisions on interest rates are viewed as a bellwether, and that has pushed the share prices of Pan American Silver (Nasdaq:PAAS), Silver Wheaton (NYSE:SLW), Barrick Gold (NYSE:ABX) and Goldcorp (NYSE:GG) down as they raised their interest rates again.
The thing that has pushed the prices of a number of commodity companies down today is that the Chinese made this move quicker than anticipated, which gives the impression inflation is more of a challenge than believed, which could drive down the demand for raw materials in 2011.
Gold and silver are negatively affected by higher interest rates as well, which is why the decision by China has pressured the sector today.
Silver Wheaton dropped to $36.49, losing $0.25, or 0.68 percent, as of 2:23 PM EST. Pan American Silver was trading at $39.25, falling $0.79, or 1.97 percent. Barrick Gold dropped to $51.37, down $0.26, or 0.50 percent. Goldcorp fell to $44.28, down $0.47, or 1.05 percent.
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