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QE Tampering Speculations Resume, Metals Under Pressure

August 20, 2013 at 1:18 by Vladimir Vyun

Metals, including gold and copper, were under pressure amid speculations about potential tampering of monetary stimulus by the Federal Reserve. The Fed will release the minutes of its last policy meeting on August 21. Market participants will study them carefully, trying to find clues to future decisions of the US central bank.

Economic data from the United States was not particularly good recently, leading to doubts about stimulus reduction by the Fed. Such doubts benefited metals. Yet it looks like the idea of quantitative easing tampering has taken hold of traders’ minds and is not going to leave easily. Concerns about smaller stimulus resurfaced yet again and are hurting metals, though gold managed to shrug off the negative influence as of now, erasing earlier losses. Meanwhile, copper remained vulnerable.

December futures for delivery of gold rallied $2.2 (0.16 percent) to $1,367.9 per troy ounce as of 1:09 GMT on COMEX today. At the same time, copper contract lost $0.03 (0.89 percent) to $3.337 per pound.

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