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Oil Higher, Gold Slides On Strong US Jobs Data

Goldbugs received a timely reminder on Friday night, our time, that the price of the metal is more tied to the strength of the US economy and greenback than any other factor, while oil prices again surged in the wake of the tremendously strong US jobs report for January (and the revisions going back to November) which saw a total of half a million new jobs reported for the three months.

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Oil Rally Ends As US Stockpiles Build

Oil’s four day boomlet vanished overnight as the usual weekly reports on US production and stocks revealed a faster than forecast (optimistically) build up in inventories to a new 80 year high for this time of year. The news saw oil prices slump by up to 8% in US and European trading and spillover into early dealings in Asia this morning.

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Wall St Rebounds In Volatile Session

The auguries for the local market today look good – a solid bounce on Wall Street in the last hour of trading this morning, a solid gain here in futures trading and the dollar back over 78 US cents – and the Reserve Bank board meeting today which (in the market at least) is widely expected to see a cut in the cash rate to 2.25%.

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