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Crude Oil Soars, Pushing Gold Down

March 9, 2016 at 23:21 by Vladimir Vyun

Crude oil rallied on Wednesday after the release of supply report from the Energy Information Administration. The data showed that US stockpiles of crude oil expanded but gasoline inventories declined. Meanwhile, various oil producers are preparing for the meeting in Moscow to discuss production Bounce House Games freeze. April futures for delivery of WTI crude oil rallied as much as 4.6% to $38.18 per barrel as of 23:13 GMT on NYMEX today. Brent crude for delivery in May advanced 2.9% to $40.80 per barrel on ICE.

The rally of crude led to gains of global stocks, and that drove gold down as investors had no need for the commodity as a safe haven. Additionally, market participants speculate that the European Central Bank may expand its monetary stimulus at tomorrow’s policy meeting. That would weaken the euro, driving the dollar up and dollar-priced commodities (like gold) down. April contract for gold edged down 0.44% to $1,257.4 per troy ounce on COMEX today.

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