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Crude Oil Extends Rally, Gold Stays Above $1,200

February 18, 2016 at 11:14 by Vladimir Vyun

Crude oil extended its rally today as Iran welcomed plans proposed by Russia and Saudi Arabia to freeze production. The problem is that Iran itself did not promise to limit output, meaning that the price movement may easily reverse as news will be coming in. But for now prices are higher, getting support also from a surprise decline of US oil inventories reported by the American Petroleum Institute. Futures for delivery of WTI crude oil in March climbed 2.41% to $31.4 per barrel as of 11:03 GMT on NYMEX today. Brent crude for delivery in April advanced 1.97% to $35.18 per barrel on ICE.

Meanwhile, gold declined but stayed above the $1,200 level, supported by the dovish policy minutes released by the Federal Reserve yesterday. The minutes suggested more gradual path of monetary tightening, making the dollar weaker. This is bullish news to the metal. Contract for delivery of gold in April slipped 0.54% to $1,204.8 per troy ounce on COMEX today.

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