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Gold Falls as US Data Suggests Early Tightening, Oil Drops as Inventories Swell

December 24, 2014 at 20:55 by Vladimir Vyun

Gold fell today as positive macroeconomic data from the United States fueled speculations about an early interest rate hike from the Federal Reserve. Yesterday, a report showed that the US economy grew in the third quarter of this year more than was previously estimated. Today, data demonstrated an unexpected drop of initial jobless claims last week. With the string of positive indicators, traders are becoming more and more convinced that Fed will tighten its policy rather soon. The dollar rallied as a result, and consequently the precious metal dropped. February contract for delivery of gold lost 0.24 percent to $1,175.20 per troy ounce as of 20:35 GMT on COMEX today.

The anticipation of monetary tightening from the US central bank was detrimental for crude oil as well. Additionally, prices dropped as US inventories swelled. Stockpiles increased by 7.3 million barrels to 387.2 million barrels last week. February WTI crude oil sank 2.22 percent to $55.85 per barrel on NYMEX today. Brent crude tumbled 2.35 percent to $60.24 per barrel on ICE.

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