Gold decreased $0.80 in New York trading to close at $902.60 per ounce, silver closed down 27 cents to $16.15 per ounce, and copper for front month delivery decreased 9.70 cents to 324.20 per pound and in London copper futures increased $101.00 to $7,389.00.

Dollar edged lower against euro to $1.4830 and higher to 106.820 yen.


[R]1:00PM New York, 6:00PM London- U.K. inflation remains at 2.1% in December for the third month.[/R]

London stocks traded in the red as homebuilders, retailers and financial stocks declined.

In London trading FTSE 100 slipped 3.06% or 190.1 to 6,025.60.

Of the 102 FTSE 100 stocks 5 gained, 95 declined, and 2 were unchanged.

The Office of National Statistics reported today that CPI annual inflation rate held steady at 2.1%, unchanged from November as gas and electricity bills increased less than last year.

However, the upward contribution to change in the CPI annual rate was from food, non-alcoholic beverages, clothing and footwear.

The statistics office added that Retail Price Index fell 4% in December from 4.3% in November on smaller increases in the average mortgage payments than a year ago in December, while the RPIX inflation, excluding mortgage interest payments, was 3.1% in December from 3.2% in November.

Separately, Chancellor of the Exchequer Alistair Darling said in London today that slow inflation “gives us a position of strength to face the current international uncertainty”.

Northern Rock chairman Bryan Sanderson said today at an extraordinary meeting in Newcastle today that the shareholders interest doesn’t exceed the need to pay the Bank of England’s 25 billion pound loan and avoiding nationalization.

Shareholders of the lender voted today on four resolutions to limit management’s ability to sell assets and issue new shares.

Northern Rock biggest shareholders such as SRM Global Advisers and RAB Capital Plc favor a private sell of the company as opposed to nationalization.

Of the FTSE 100 index shares Experian Group led gainers with a rise of 2.46% followed by gains in Sainsbury Plc of 1.78%, in ITV Plc of 1.30%, in Man Group Plc of 0.66%, and in Imperial Tobacco of 0.42%.

Sainsbury Plc and Experian gained after Goldman Sachs added companies to its “conviction buy” list.

Taylor Wimpey led decliners of the FTSE 100 index shares with a fall of 7.71% followed by losses in Home Retail Group of 6.85%, in Kingfisher Plc of 6.8%, in British land Company Plc of 6.62%, and in Carphone Warehouse of 6.24%.

Taylor Wimpey and other homebuilders fell after the company reported that orders declined 19% as of end of last year on the back of falling prices and tighter credit markets.

New homes sold before completion edged lower to 1.06 billion pounds by December 31 from 1.32 billion pounds in the previous year. Persimmon fell 3.11%.

Retailers also tumbled after Tesco said today that sales at U.K. stores open at least a year rose by 3.1% in the fourth quarter compared to 4.1% realized in the third quarter.