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Precious Metals Hurt by QE Talks, Industrial Metals Resilient

December 12, 2013 at 22:31 by Vladimir Vyun

Precious metals are under heavy pressure from speculations about potential quantitative easing tapering by the Federal Reserve. Industrial metals fell too, but were able to rise as of now. Signs that the Republicans and the Democrats are close to reaching a budget agreement fueled talks about QE reduction. The Fed will make its monetary policy decision in a week.

Today’s positive data added to chances of smaller stimulus. US retail sales advanced 0.7 percent, above the median forecast. Yet not everything was that shiny. Claims for unemployment benefits surged from 300,000 to 368,000 last week.

February futures for delivery of gold sank $32.3 (2.57 percent) to $1,224.9 per troy ounce as of 22:23 GMT on COMEX today. March contract for silver tumbled as much as $0.89 (4.35 percent) to $19.47 per ounce. The contract for delivery of copper in three months advanced $61 (0.85 percent) to settle at $7,220 per metric ton on LME. Aluminum added $14 (0.78 percent) to $1,817 per ton.

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