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Oil Down on US Government Shutdown, Precious Metals Up

October 1, 2013 at 4:10 by Vladimir Vyun

Crude oil declined today as the deadline for the US government shutdown nears. At the same time, precious metals rose on a bid for safety. President Barack Obama urged the Congress to pass a stopgap spending bill that is not tied to his healthcare program. Yet it looks like politicians will not be able to reach an agreement before the deadline (which is literally minutes away).

The rally of the metals was limited as not many specialists believe that the shutdown will stay for long. It is likely that lawmakers will be more willing to compromise before reaching yet another threshold — the deadline for increasing the debt limit, which is set on October 17. Crude oil also fell on forecasts of increasing US inventories.

November futures for delivery of crude oil fell $0.34 (0.33 percent) to $102.01 per barrel as of 4:00 GMT on NYMEX today. Brent grade of crude slid $0.4 (0.37 percent) to $107.97 per barrel on ICE. December futures for gold rallied $1.8 (0.14 percent) to $1,328.8 per troy ounce on COMEX. Contract for silver added $0.04 (0.17 percent) to $21.75 per ounce.

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