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Gold Drops After Fed Minutes, Nickel Rises to Monthly Record

February 20, 2014 at 1:38 by Vladimir Vyun

Gold extended its drop today after the Federal Reserve released the minutes of its latest monetary policy meeting. The minutes showed that the policy makers believe that it is necessary to continue reducing the size of monthly asset purchases. Some of them were worried that economic recovery is not resilient enough and stimulus tapering should proceed with slower pace, while others thought that stimulus reduction should be performed even faster. Dollar rallied on the news, while commodities priced in the US currency fell. April futures for delivery of gold slipped $8.2 (0.62 percent) to $1,312.2 per troy ounce as of 1:27 GMT on COMEX today.

Nickel jumped to the highest price in almost a month yesterday on concerns that the ban on export of unprocessed ore from Indonesia will make global surplus shrink. Meanwhile, economic growth in China, the biggest nickel consumer in the world, suggests that demand for the metal should increase. Contract for delivery of nickel in three months rose 0.4 percent to settle at $14,515 per metric ton on LME yesterday after rising to $14,652 earlier — the highest price since January 24.

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