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Gold Rallies as US Stocks Drop, WTI Oil Falls on US Inventories

May 20, 2014 at 20:33 by Vladimir Vyun

Gold continued to rise today as investors were fleeing US stocks after various companies demonstrated worse-than-expected earnings. The Standard & Poor’s 500 Index of shares fell as much as 0.9 percent. The metal also rallied because the dollar was falling, boosting commodities priced in the US currency, as members of the Federal Reserve were trying to downplay expectations of tighter monetary policy in the near future. June futures for delivery of gold advanced $1.1 (0.09 percent) to $1,294.9 per troy ounce as of 20:25 GMT on COMEX today.

Meanwhile, prices for the West Texas Intermediate grade of crude oil fell today on speculations that the United States have ample reserves. Prices for the Brent grade advanced. Analysts estimated that US stockpiles barely fell last week, shrinking by 0.1 million barrels, which is negligible compared to the substantial amount of inventories. The Energy Information Administration will release its official estimate tomorrow. June futures for delivery of WTI crude oil dropped $0.17 (0.17 percent) to $102.44 per barrel on NYMEX. Contract for Brent crude gained $0.35 (0.32 percent) to $109.72 percent on ICE.

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