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Gold & Oil Rally as US Fundamentals Disappoint

May 30, 2013 at 20:13 by Vladimir Vyun

Gold and crude oil rallied today as poor macroeconomic data from the United States ignited speculations that the Federal Reserve may refrain from tightening its monetary policy. The second revision of US gross domestic product showed growth by 2.4 percent in the first quarter of 2013, somewhat below the first estimate of 2.5 percent. Unemployment claims unexpectedly increased by 10,000 to 354,000 last week. The poor reports weakened the dollar, allowing commodities to gain.

US crude oil inventories rose, putting downside pressure on prices. The Energy Information Administration reported that stockpiles of crude swelled by 3.0 million barrels last week, while analysts have predicted a decline. The reserves reached 397.6 million barrels, the highest level on record.

Gold futures for delivery in August jumped as much as $22.30 (1.6 percent) to $1,414.10 per troy ounce as of 20:09 GMT on COMEX today. Contract for delivery of WTI crude oil in July rose $0.67 (0.72 percent) to $93.80 per barrel on NYMEX. Meanwhile, futures for Brent crude lost $0.23 (0.22 percent) to $102.20 per barrel on ICE.

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