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Commodities Rally on Wednesday Thanks to Positive Fundamentals

March 20, 2019 at 23:29 by Vladimir Vyun

Metals, including gold, rallied on Wednesday after the Federal Reserve turned out to be extremely dovish, dropping its plans to hike interest rates further this year. That hurt the US dollar, helping dollar-priced commodities. Gold in particular tends to move inversely to the greenback. April futures for delivery of gold jumped 0.94% to $1,314 per troy ounce as of 23:11 GMT on COMEX today. Silver for delivery in May surged as much as 1.16% to $15.5 per ounce. Copper gained 0.27% to $2.929 per pound.

Crude oil rallied as well, not just because of the falling dollar, but also thanks to the unexpected drop of US inventories of crude. The stockpiles shrank by as much as 9.6 million barrels last week, whereas market participants were counting on an increase by 0.5 million barrels. Contract for delivery of WTI crude oil in May jumped 1.36% to $59.83 per barrel on NYMEX today. Brent crude rallied 1.32% to $68.5 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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