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Commodities Retreat as Dollar Shows Resilience

March 27, 2015 at 20:55 by Vladimir Vyun

Commodities were on the defensive today as the US dollar attempted to stage a rally. The greenback was rising during the first half of the trading session though it was hit later by soft economic data from the United States. Later, the US currency got some support from the speech of Federal Reserve Chairwoman Janet Yellen who said:

I expect that conditions may warrant an increase in the federal funds rate target sometime this year.

Recently, speculations about the possible timing for a liftoff of the Fed’s interest rates were the major driving force for markets. When traders talks about a possible delay for a rate hike, the dollar falls and commodities rise as it has happened yesterday. When market participants focus on the fact that monetary tightening is still going to happen this year, the US currency rises, driving dollar-priced raw materials down, as it was the case today.

Futures for delivery of gold in June declined 0.67 percent to $1,196.70 per troy ounce as of 20:45 GMT on COMEX today. May copper lost 1.78 percent to $2.761 per pound. Contract for WTI crude oil sank as much as 5.93 percent to $48.38 per barrel on NYMEX.

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

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