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Crude Oil Fluctuates, Gold Gains on Concerns About Growth

September 8, 2011 at 21:05 by Vladimir Vyun

Crude oil today gained 1 percent, retreated 0.8 percent and later fluctuated. Crude gained as US reserves declined by 4.0 million barrels to 353.1 million last week, while analysts predicted a decline by 1.9 million. Oil lost its gains on speculation that the global economic growth is faltering. October contract for delivery of crude oil fell $0.07 to $89.27 per barrel by 12:13 on NYMEX, while today’s price range was from $88.59 to $90.23.

The same concerns that hurt oil boosted gold. Worries about economic recovery intensified after US jobless claim climbed from 412,000 to 414,000 last, while they were expected to go down to 407,000. Today’s speech of European Central Bank President Jean-Claude Trichet, after the central bank kept the target interest rate unchanged at 1.5 percent, were rather pessimistic and spurred the speculation the ECB is going to cut borrowing costs in the near future. Futures for delivery of gold in December rose $39.90 (2.2 percent) to $1,857.50 as of 14:18 on COMEX. The problems in Europe allowed the precious metal to advance 31 percent in 2011.

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