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Gold & Crude Oil Retreat After Gains

December 2, 2014 at 1:33 by Vladimir Vyun

This week started poorly for gold as the precious metals dropped at first. Switzerland held a referendum during the weekend. One of the topics for voting was an increase of the amount of reserves that the Swiss National Bank should allocate in gold. It was expected that in case of favorable voting the metal would surge. The Swiss voted against the decision though, and bullion dropped initially. Yet prices bounced later, and the metal settled with a gain. At the start of today’s session, prices for gold are down again. February futures for delivery of gold dropped 1.16 percent to $1,204.00 per troy ounce as of 1:16 GMT on COMEX today. Prices climbed as much as 3.6 percent to settle at $1,218.10 yesterday.

It is likely that gold just followed crude oil that also bounces yesterday but fell today. Crude dropped last week, dragging other commodities along, after the Organization of Petroleum Exporting Countries decided not to cut production. Experts speculated that oil bounced due to short-covering. Today, West Texas Intermediate crude retreated while the Brent grade kept gains. January contract for delivery of WTI oil was down 0.70 percent to $68.52 per barrel on NYMEX. Brent crude jumped as much as 3.41 percent to settle at $72.54 per barrel on ICE yesterday.

If you have any questions and comments on the commodities today, use the form below to reply.

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