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Gold Halts Its Short-Lived Rally

April 12, 2013 at 0:33 by Vladimir Vyun

Gold fell today after rallying yesterday. The rally was caused by the weakness of the US dollar. The greenback fell 0.6 percent against the basket of six major currencies. The minutes of the last Federal Reserve meeting did not help the currency even as they showed that some policy makers favor reduction of quantitative easing.

Previously, gold fell on reports that Cyprus is going to sell bullion as a way to reduce its debt. The country denied the rumors later.

Still, the metal seems not ready to continue the advance today. US initial jobless claims may be partly responsible for the drop as their decline reduces incentive for the Fed to keep stimulus. Claims for unemployment benefits dropped to the seasonally adjusted rate of 346,000 last week from 388,000 in the week before, more than analysts have anticipated.

July gold futures dropped $4 (0.24 percent) to $1,562.10 per troy ounce as of 00:30 GMT on COMEX today after rising 0.4 percent to $1,564.40 per ounce yesterday.

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