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Gold & Silver Plunge amid Risk Appetite, Oil Rally on Supply Cut Talks

February 15, 2016 at 14:03 by Vladimir Vyun

The week has started with the risk-positive mood among investors, which was limiting demand for safer assets. It was felt not only on the currency market, but on commodity markets as well, sending gold tumbling more than 2 percent. It was not a surprise for most market analysts to see correction of prices after the biggest weekly rally in more than four years. April futures for gold sank 2.38 percent to $1,209.9 per troy ounce as of 13:49 GMT on COMEX today. Silver joined the decline as March contract plunged 2.88 percent to $15.34 per ounce.

Meanwhile, crude oil extended last week’s gains as speculations about a deal concerning supply cuts persisted. Members of the Organization of Petroleum Exporting Countries and Russia are talking about reduction of output as a measure to support prices. While many experts are skeptical about the deal, it looks like the market considers the talks seriously enough to propel futures for crude higher. March futures for WTI oil gained 1.56 percent to $29.9 per barrel on NYMEX today. Contract for delivery of Brent crude oil in April advanced 1.05 percent to $33.71 per barrel on ICE.

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