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Commodities Start New Week with Gains in Oil, Gold, and Silver

May 16, 2016 at 17:58 by Andriy Moraru

Crude oil and precious metal investors are likely to be in a happy mood today as commodities start the new week on a positive note. Analysts at Goldman Sachs say that the end of the oil glut, in which the supply had dwarfed demand for much of the last two years, is near.

Gold is enjoying bullish tailwinds today, all thanks to the sustained weakness in the U.S. dollar. The WSJ Dollar Index, which measures the greenback against 16 currencies, was down 0.1% to 86.80 today – weakness in the U.S dollar often makes gold attractive and cheaper for investors.

The gains being recorded in crude oil today Big Bounce House suggest that investors think that a recovery in oil prices is long overdue. Oil is enjoying bullish tailwinds because oil-production outages increased in May – the bullish outlook for oil might continue in the short term because vandals are blowing up oil installations in Nigeria to reduce production from 2.2 million barrels per day to 1.4 million barrels per day. More so, wildfires are shutting down Canadian oil sands.

This morning, U.S. light sweet oil for June delivery gained 3.5% to $47.71 per barrel while Brent crude gained 3.2% to $49.36 per barrel. Amidst precious metals, spot gold was up 0.6% to $1,281.40 an ounce while gold for June delivery was trading up at 0.8% at $1,281.40 (as at 0730GMT) an ounce after touching an intraday high of $1,290.40 earlier in the session. Spot Silver was up 1.4% to $17.240 per ounce and Platinum gained 0.8% to $1,056.20 an ounce.

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

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