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Gold Loses Risk Premium, WTI Oil Keeps Gains

March 24, 2014 at 21:56 by Vladimir Vyun

Gold extended its slump today, demonstrating the biggest drop this year. Traders were selling the metal after the Federal Reserve hinted that it may raise interest rates as soon as the next year. Additionally, the commodity has lost risk premium as the tensions in Eastern Europe are calming down, while the conflict between Russia and Ukraine (as well as the United States and the European Union) was the reason for the recent jump of prices. June futures for delivery of gold sank as much as $26.7 (2 percent) to $1,309.3 per troy ounce as of 21:46 GMT on COMEX today.

West Texas Intermediate crude oil rallied on the previous trading session and kept its gains today on concerns about the closure of the Houston Ship Channel. The channel, which is the key transit route for crude, was closed after two ships had collided on March 22, resulting in oil spill. Meanwhile, Brent oil continued to fall, meaning that the gap between two grades of crude continues to widen. WTI crude oil rallied $0.14 on the previous session before trading at $99.42 per barrel on the current session. Brent crude lost $0.35 (0.33 percent) to $106.57 today.

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

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