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Crude Oil & Gold Fall Even as Fed Eases Monetary Policy

June 20, 2012 at 21:10 by Vladimir Vyun

Crude oil fell today as US inventories unexpectedly rose. US stockpiles of crude climbed by 2.9 million to 387.3 million barrels last week, while analysts predicted a decrease by 1 million. Total motor gasoline inventories increased by 0.9 million barrels. August futures for delivery of crude oil slipped $0.02 to $84.33 per barrel on NYMEX. Brent grade of crude slumped from $95.68 to $92.58 per barrel as of 20:45 GMT on ICE today. That was the lowest settlement since January 5, 2011.

Gold, as well as oil and other commodities, was expected to rally in case the Federal Reserve would expand monetary stimulus. The Fed did indeed ease its monetary policy, but that has not provided the expected effect. Quantitative easing was expected and was likely priced in. Now, traders put more attentions to economic projections of the central bank and discovered that the bank is less optimistic than it was in April. Gold retreated from $1,618.00 to $1,606.00 per ounce today on COMEX.

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