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Crude Rallies After Kuwait Talks, Gold & Silver Gain on Fears

April 5, 2016 at 21:28 by Vladimir Vyun

Prices for crude oil edged higher today after Kuwait voiced an opinion that oil producers are going to agree on output freeze. Major oil-producing countries are going to meet in Doha in April 17 to discuss a cap on production. Most analysts are skeptical about the deal and think that the current rally will not last long. Futures for delivery of WTI crude oil in May gained 1.93% to $36.39 per barrel as of 21:07 GMT on NYMEX today. Brent crude rallied 1.57% to $38.28 per barrel on ICE.

Gold and silver rallied as risk aversion took hold of markets. The drop of global stocks spooked investors and made them seek safe assets. The speech of Christine Lagarde, Managing Director of the International Monetary Fund, did not help the matters as she highlighted challenges for world’s growth:

Overall, the global outlook has weakened further over the last six months — exacerbated by China’s relative slowdown, lower commodity prices, and the prospect of financial tightening for many countries.

June contract for gold edged up 1.09% to $1,232.6 per troy ounce on COMEX today. May silver advanced 1.31% to $15.14 per ounce.

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