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Tensions in Egypt Boost Prices for Oil & Precious Metals

January 29, 2011 at 2:10 by Vladimir Vyun

Crude oil jumped the most since September 2009 on concerns that tensions in Egypt will spread unrest to the major oil-producing countries. Protesters are going on demonstrations in Egypt, demanding an end to the 30-year rule of President Hosni Mubarak. Suez Canal, one of major path for transporting oil, is situated in Egypt and civil unrest in the country may disrupt supplies coming this way. March delivery for crude oil rose $3.70 to $89.34 per barrel on NYMEX. Prices gained 0.3 percent this week and 21 percent last year.

Gold and other precious metal also profited from Egyptian tensions. The unrest in Egypt turned market sentiment to risk aversion and increased demand for the precious metals as a safe haven. April futures for gold delivery gained $21.90 (1.7 percent) to $1,341.70 per ounce by 13:45 on COMEX. March futures for silver delivery advanced $0.888 (3.3 percent) to $27.919 per ounce. April futures for platinum delivery jumped $1.50 to $1,805 per ounce on NYMEX. March futures for palladium delivery went up $3.50 (0.4 percent) to $817 per ounce.

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