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Gold Gains After Fed Minutes, Oil Falls on Supply Growth

October 8, 2014 at 21:03 by Vladimir Vyun

Gold maintained earlier gains thanks to the minutes of the latest Federal Reserve policy meeting. The minutes spoke about risks to global growth and the threat of a strong dollar for the US economy. The greenback fell after the release, making investors, who are interested in safer assets, consider gold as an alternative to the dollar, which is losing value. December futures for gold were up 0.74 percent to $1,222 per troy ounce as of 20:41 GMT on COMEX today.

Crude oil remained in a decline after a report from the Energy Information Administration showed that growth of US inventories exceeded analyst’ expectations. US stockpiles of crude grew by 5.0 million to 361.7 million barrels last week, while market participants were counting on a 2.1 million increase. The combination of increasing reserves and concerns about potentially falling demand due to slowing economic growth makes the trading environment unfavorable for oil. November futures for WTI crude oil dropped as much as 1.33 percent to $87.67 per barrel on NYMEX. Futures for Brent crude lost 0.54 percent to $91.61 per barrel on ICE.

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