Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Dollar Weakens, Gold Stays Above $1,500, Oil Extends Rally

April 20, 2011 at 22:27 by Vladimir Vyun

Gold and crude oil extended the rally today as the dollar continues to weaken. The US currency still feels the impact of the downward revision of the US credit rating outlook by Standard & Poor’s, even after the macroeconomic data showed that the US economic recovery goes forward with good pace. The Dollar Index fell 1 percent to 74.272, the lowest level since December 1, 2009.

Gold and other precious metals also gained as the rising prices across the world increases demand for a hedge against inflation. Crude oil was bolstered by the signs of the global recovery. It’s interesting to see how quickly demand for commodities returned after it was weakened by concerns about the European debt crisis. Anyway, commodities are in favor again, as was shown by the Thomson Reuters/Jefferies CRB Index of 19 commodities, which jumped as much as 1.7 percent.

June futures for gold delivery gained $3.80 (0.3 percent) to $1,498.90 by 13:37 on COMEX in New York, while contract for immediate delivery of the precious metal jumped 0.6 percent to the record of $1,506.03 per ounce in London. June futures for crude oil delivery rose $3.17 to $111.45 per barrel on NYMEX, posting the biggest gain since March 17.

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

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