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Commodities End Friday with Gains on US Housing Data

August 24, 2013 at 0:38 by Vladimir Vyun

Commodities managed to end the last trading session of this week with gains on speculations that the Federal Reserve may postpone reduction of its asset purchases. Such talks were caused by very negative housing data. It was very troubling for market participants as the housing market was one of the best-performing sectors of the US economy lately.

US new home sales slumped from 455,000 in June to 394,000 in July. This is compared to the consensus forecast of 487,000. Previously, traders were worried that the Fed is going to tamper its stimulus program and this was hurting prices for raw materials. Yet the recent signs of weakness in employment and housing reduced chances for stimulus tampering in the near future, bringing relief to the commodity market.

October futures for delivery of WTI crude oil jumped $1.39 to close at $106.42 per barrel on NYMEX. December contract for gold surged $25 (1.82 percent) to settle at $1,395.80 per troy ounce on COMEX. Copper ended the session 0.6 percent higher at $3.356 per pound.

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