Gold Erases Losses Following Fed Minutes
ICM Brokers | Apr 10, 2014 06:01AM ET
West Texas Intermediate crude climbed to a one-month high as a government report showed that rising gasoline use reduced inventories of the fuel. WTI’s discount to Brent shrank to the narrowest since September. Prices gained 1 percent in New York. Gasoline demand jumped to a three-month high in the four weeks ended April 4 as supplies dropped to the least since November, the Energy Information Administration said. Crude extended gains as U.S. equities advanced and the dollar weakened after minutes of the last Federal Reserve meeting, Total U.S. crude stockpiles grew 4.03 million barrels last week, more than five times as much as analysts forecast, to a four-month high of 384.1 million barrels. Imports gained 481,000 barrels a day, following a drop of 786,000 barrels in the previous week because the Houston Ship Channel was shut. Crude rose to 103.40.
Gold erased losses after minutes from the Federal Reserve’s March meeting showed several policy makers said a rise in their median projection. “Several participants noted that the increase in the median projection overstated the shift in the projections,” the minutes of the March 18-19 Federal Open Market Committee meeting showed. Fed Chair Janet Yellen said last month that the central bank may end its debt-buying program this year and raise interest rates in 2015. Gold slid 28 percent in 2013, mainly as the outlook for less monetary stimulus dimmed the appeal of metal as an inflation hedge and equities soared to a record. Prices rebounded this year, climbing 8.9 percent through yesterday, partly as U.S. economic growth faltered. Gold gained 0.1 percent to $1,309.
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