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Precious metals pullback from early-week gains

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Capital Market
Last Updated : Apr 09 2015 | 9:13 AM IST

Sharply lower crude oil prices also limit buying interest

Gold prices ended the U.S. day session moderately lower on Wednesday, 08 April 2015 on another corrective pullback from early-week gains. The latest Federal Open Market Committee (FOMC) minutes from last month's meeting showed that FOMC members were divided on the timing of a U.S. interest rate hike. Markets initially brushed off the minutes as containing nothing new.

Gold for June delivery fell $7.50, or 0.6%, to settle $1,203.10 an ounce but dropped further to $1,197.60 an ounce once the minutes were published.

May silver lost 39 cents, or 2.3%, to $16.45 an ounce.

Sharply lower crude oil prices on this day also limited buying interest in gold and silver. This key outside market saw pressure on a big build up in U.S. crude oil stockpiles, in a weekly report issued Wednesday. Crude oil prices have worked up from the multi-year low scored in mid-March, to still begin to suggest a market bottom is in place.

The U.S. dollar index was solidly lower in overnight trading Wednesday but did rebound during the U.S. trading session and then move to its daily high after the FOMC minutes. This also helped to pressure gold in the aftermath of the FOMC minutes.

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First Published: Apr 09 2015 | 7:28 AM IST

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