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Metal Market Under Pressure, Crude Oil Avoids Losses

July 30, 2015 at 9:35 by Vladimir Vyun

At the start of the current trading session, the metal market was weighed down by concerns about China’s economic growth and prospects for monetary tightening in the United States. China’s stock market collapsed recently, and even though the crash has halted, it led to worries that the world’s second-biggest economy experiences troubles. Meanwhile, yesterday’s policy statement released by the US Federal Reserve left a door open to a September interest rate hike — very bad news to metals. December futures for delivery of gold declined 0.79 percent to $1,084.70 per troy ounce as of 9:28 GMT on COMEX today. September contract for silver lost 0.83 percent to $14.62 per ounce. Copper dipped 0.91 percent to trade at $2.3855 per pound.

At the same time, crude oil avoided losses, demonstrating a rally today. The possible explanation for such behavior is the report by Wall Street Journal about the planned output reduction by Saudi Arabia. Yet fundamentals remain rather bearish for crude over longer-term with the resumption of Iran’s exports adding to the oversupply on the market. September WTI crude oil ticked up 0.2 percent to $48.89 per barrel on NYMEX today. Brent grade of oil advanced 0.77 percent to $53.79 per barrel on ICE.

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