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US Economy Expands, Gold & Copper React Differently

September 27, 2013 at 2:03 by Vladimir Vyun

Macroeconomic data from the United States was good and it had different impact on different metals. Copper rallied as signs of growth promise steady demand for industrial metals, while gold declined because evidences of economic recovery reduced attractiveness of precious metals as a safe haven.

US economy expanded 2.5 percent in the second quarter of this year after rising 1.1 percent in the first quarter. Unemployment claims fell by 5,000 to 305,000 last week. It was a pleasant surprise for traders who have expected an increase to 319,000.

Of course, positive data means higher chances for quantitative easing tampering in October. And this is bad for industrial and precious metals alike.

December futures for delivery of copper advanced 1.1 percent to settle at $3.307 per pound on COMEX. Contract for gold declined 0.9 percent to $1,324.10 per troy ounce.

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