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Lumber Gains, Silver Down, Gold Price Touches Lowest Level in Month

February 29, 2012 at 21:08 by Vladimir Vyun

Lumber futures climbed today as US housing market recovers and demand from China is expected to increase. Wood Resources International LLC predicted that lumber may reach $300 per 1,000 board feet by July. Lumber price rose 0.7 percent to $279.10 by 10:26 on CME today. Prices were up 12 percent since the end of January.

Gold and silver posted a biggest drop in two months after today’s testimony of Federal Reserve Chairman Ben Bernanke made analysts speculate that the US central bank will refrain from adding stimulus for the US economy. Bernanke said that “decline in the unemployment rate over the past year has been somewhat more rapid than might have been expected” and that the labor market demonstrated “positive developments”, though “the job market remains far from normal”. The Chairman also said that “the inflation outlook subdued”. Such comments hint that the Fed isn’t going embark on a new round of quantitative easing. Precious metals suffered as an additional easing was priced in and the Chairman’s testimony has triggered a massive sell-off. Gold price slumped from $1,787.10 to $1,692.50 per ounce as of 20:54 GMT on COMEX and reached the lowest level since January 25 today. Silver was down from $36.93 to $34.52 per ounce in New York today.

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