Gold halts 3-session rally; oil rebounds from lowest since April 2009

San Francisco (Jan 7)  Gold snapped a three-session winning run today as after the Federal Reserve signalled it’s on course for the first interest-rate increase since 2006, supporting the dollar and eroding demand for the metal as an alternative asset.

Gold for February delivery fell 0.7 percent to $1,210.70 an ounce, while March silver surrendered 0.5 percent to $16.54 an ounce.

“Most participants thought the reference to patience indicated that the committee was unlikely to begin the normalization process for at least the next couple of meetings,” according to the minutes of the central bank’s December meeting released today in Washington.

In other metals, silver futures for March delivery declined 0.6 percent to close at $16.544 an ounce on the Comex. The price jumped 6.7 percent in the previous three sessions.

Platinum futures for April delivery fell less than 0.1 percent to $1,220.90 an ounce. Palladium futures for March delivery declined 1 percent to $792.45 an ounce, the biggest drop since Dec. 16.

In energy trading, West Texas Intermediate crude rebounded from the lowest in more than five and half years amid strong demand from U.S. refineries.

WTI for February delivery increased 72 cents to settle at $48.65 a barrel on the New York Mercantile Exchange. It earlier touched $46.83, the lowest intraday level since April 2009.

Brent for February settlement rose 5 cents to end the session at $51.15 a barrel on the London-based ICE Futures Europe exchange. It earlier touched $49.66, the least since April 29, 2009.

Source: ProactiveSpectator