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Metals Rally as Dollar Drops, Crude Gains on Falling Inventories

December 28, 2013 at 4:09 by Vladimir Vyun

Metals, including gold, copper and aluminum, rallied on Friday as the dollar was falling. The greenback weakened on speculations that the Federal Reserve may postpone additional reductions of monetary stimulus. Jens Weidmann, President of the Deutsche Bundesbank and European Central Bank Governing Council member, criticized the European Central Bank policy, saying the low interest rates are dangerous to the economy. Such comments boosted the euro, while weakening the US currency even further. February futures for gold were up $1.7 (0.14 percent) to $1,214.0 per troy ounce on COMEX. Contract for delivery of copper in three months advanced $99 (1.36 percent) to $7,382 per metric ton on LME. Aluminum gained $52 (2.96 percent) to $1,810 per ton.

Crude oil gained as US inventories fell more than was expected by specialists. Stockpiles declined by 4.7 million barrels to 367.6 million last week, while the median estimate was at 1.9 million. West Texas Intermediate grade rose above $100 for the first time in two months. February futures for delivery of WTI crude oil rose 0.77 (0.8 percent) to settle at $100.32 per barrel on NYMEX. Brent crude was up $0.20 (0.18 percent) to $112.18 per barrel on ICE.

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