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Commodities Down After Fed Hikes Rates

December 17, 2015 at 1:29 by Vladimir Vyun

Gold and silver fell today following the Wednesday’s announcement from the Federal Reserve about an interest rate hike. While the metals attempted to rally after the announcement as the dollar’s reaction to the news was confusing, they ultimately declined after the US currency decided to rally after all. The monetary tightening is viewed to be very bearish to the market of metals in the long run. Contract for delivery of gold in February declined 0.59 percent to $1,070.5 per troy ounce as of 1:20 GMT on COMEX today. March contract for silver dropped 1.04 percent to $14.1 per ounce.

Crude oil also sank after the announcement, though the West Texas Intermediate grade pared some of its losses at the start of the Thursday’s session. Crude dropped also as US inventories demonstrate an unexpected build-up last week. WTI oil for delivery in January ticked up 0.59 percent to $35.73 per barrel on NYMEX today after sinking almost 5 percent yesterday. Brent crude oil tumbled 3.28 percent to trade at $37.19 per barrel on ICE.

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