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Precious Metals Bounce After Huge Slump

October 30, 2014 at 23:50 by Vladimir Vyun

Prices for gold and other precious metals bounced at the early Asian session today following yesterday’s huge drop. One of the possible reasons for the bounce is profit-taking. Another factor that might have driven metals higher is hopes of gold bugs that low prices will spur physical demand in Asian countries, especially China and India as the traditional holiday season nears.

Precious metals slumped yesterday due to upbeat economic data from the United States. US gross domestic product grew 3.5 percent in the third quarter of 2014, exceeding analysts’ expectations. Initial unemployment claims were little changed last week. The Federal Reserve ended its asset-purchase program on Wednesday, saying that monetary tightening may happen early if economic data is good. The recent reports were indeed positive, increasing chances for an early interest rate hike, and such prospects are very negative for gold.

December contract for gold added 0.08 percent to $1,199.60 per troy ounce as of 23:47 GMT on COMEX today. Prices were down 2.09 percent to $1,199.30 at the previous session. Silver climbed 0.40 percent to $16.49 per ounce following the huge decline by 4.70 percent to $16.45. Spot price for platinum went up 0.16 percent to $1,247.50 per ounce, and palladium gained 0.71 percent to $786.00 per ounce.

If you have any questions and comments on the commodities today, use the form below to reply.

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