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Gold & Oil Profit from Dollar’s Weakness

January 27, 2015 at 21:27 by Vladimir Vyun

The US dollar dropped today as economic data from the United States came out mixed while concerns about victory of the Syriza party in the Greek elections were abating. As a result, commodities priced in the US currency rallied. Gold and crude oil were among winners.

The worst US economic report that came out during the current session was the data about durable goods orders. It showed a slump by 3.4 percent in December, the result which was nowhere near the increase by 0.6 percent predicted by analysts. While other indicators were not as bad (in fact, mostly positive), the poor report was enough to keep the already weak dollar in check.

Another reason for the greenback’s weakness was the parliamentary elections in Greece. While initially analysts were concerned about the possibility of victory for the leftist Syriza party, they changed their view after Syriza won after all, thinking that the party’s stance is anti-austerity but not anti-euro and Greece is not likely to exit the eurozone.

April futures for gold jumped 1.23 percent to $1,295.10 as of 21:22 GMT on COMEX today. March futures for Brent crude advanced 1.82 percent to $45.97 per barrel on NYMEX. Contract for Brent crude gained as much as 2.16 percent to $49.20 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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