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Oil Gains on US Consumer Spending, Gold Bulls Retain Hope

April 27, 2012 at 22:12 by Vladimir Vyun

Crude oil futures advanced today as growth of US household spending overshadowed slower-than-expected economic growth. US gross domestic product rose 2.2 percent in the first three months of 2012, compared to expectations of a 2.6 percent increase. Personal expenditures increased 2.9 percent in the first quarter of this year, up from 2.1 percent in the previous quarter. The average forecast was 2.3 percent. Crude oil contract for June delivery rose $0.38 cents to $104.93 per barrel on NYMEX, the highest price since April 2, while over the week prices were up 1.8 percent. Brent oil advanced from $119.58 to close at $119.70 per barrel today on ICE.

Gold price rose today as central banks and hedge funds boosted their purchases of the precious metal. The International Monetary Fund reported that Mexico, Russia and Turkey expanded their reserves by 44.8 metric tons valued at $2.4 billion in March. Prices for gold rose as Federal Reserve Chairman Ben Bernanke stated that the Fed will continue to stimulate the US economy. The comments weakened the dollar, bolstering raw materials. Many analysts believe that gold would gain next week. Gold spot prices increased by $$4.40 to close at $1,664.00 per ounce today on COMEX.

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