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Gold Falls on Absence QE, Oil Down as Stockpiles Grow

April 5, 2012 at 3:59 by Vladimir Vyun

Gold fell for a second day as the Federal Reserve signaled that it may refrain from quantitative easing. The minutes of the Federal Open Market Committee monetary policy meeting said:

In their discussion of monetary policy for the period ahead, members agreed that it would be appropriate to maintain the existing highly accommodative stance of monetary policy.

Additional stimulus could’ve increase appeal of the precious metal as an inflation hedge, but now it looks unlikely. Gold traded today at $1,622.00 per ounce on COMEX after sliding from $1,646.50 to $1,620.00 yesterday and reaching $1,613.00 — the lowest settlement since January 10.

Crude oil also retreated as US inventories rose more than was predicted. Stockpiles advanced by 9.0 million barrels to 362.4 million last week, compared to the predicted increase by 2.1 million. Price for oil rebounded somewhat today. Oil futures for delivery in May advanced $0.67 to $102.14 per barrel in electronic trading on NYMEX before trading at $102.03 today. Brent was up to $123.04 per barrel on ICE today after it slid from $124.88 to $122.74 yesterday.

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

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