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ECB Doesn’t Plan Buying Gold, Oil Under Threat of Oversupply

December 5, 2014 at 0:24 by Vladimir Vyun

Gold dipped today as the European Central Bank declined the idea of buying gold as a part of its quantitative easing program. Previously, some European policy makers were speculating that the ECB might expand its gold reserves while buying assets in accordance to its stimulus measures. Yet when journalists asked ECB President Mario Draghi whether central bank’s officials discussed buying gold at Thursday’s policy meeting, he answered:

On what sort of assets should be included in QE, my sense and recollection is that we discussed all assets, but gold.

Bullion fell as a result of the statement though losses were limited as the dollar retreated as the ECB refrained from expanding its stimulus program. February contract for delivery of gold declined 0.17 percent to $1,205.60 per troy ounce as of 00:11 GMT on COMEX today.

Futures on crude oil declined today as well. Oil was under pressure from speculations that the OPEC decision to refrain from cutting output will result in oversupply. On top of that, Saudi Arabia reduced its export prices for US and Asian buyers. January futures for delivery of WTI crude oil inched lower by 0.07 percent to $66.76 per barrel on NYMEX today. Brent crude was down 0.40 percent to $69.64 per barrel on ICE.

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