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Without Risk Appetite Oil Slides, Gold Thrives

September 16, 2011 at 21:13 by Vladimir Vyun

The optimism for the European economy, which was caused by yesterday’s announcement of the European Central Bank, quickly waned today. As a result, gold posted the biggest gain and oil showed the biggest drop this week as risk appetite went away.

The ECB announced yesterday that it’ll sell dollar to the European banks in the joint effort with other central banks of the developed nations. The European Union finance ministers said at today’s meeting that they won’t support the lenders. Finland may halt the bailout for Greece by the demand of collateral. The European leaders rejected the offer of US Treasury Secretary Timothy Geithner to perform tax cuts and spending increase, arguing that the debt crisis made such actions impossible.

October futures for delivery of crude oil slid $1.54 (1.7 percent) to $87.86 per barrel by 12:28 on NYMEX. November Brent crude subtracted $0.18 to $112.12 per barrel on ICE. Contract for delivery of gold in December jumped $33.30 (1.9 percent) to $1,814.70 on COMEX by 13:49 in New York, showing the biggest advance since September 8.

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

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