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Gold & Oil Rally on Back of Weakening Dollar

May 29, 2015 at 21:26 by Vladimir Vyun

Some commodities rallied today thanks to the weakening US dollar. Among them have been gold and crude oil. Bullion demonstrated moderate gains while the rally of crude was quite big.

The US currency was struggling due to several negative economic reports from the United States. The most important of them was the second estimate of gross domestic product that showed a decline of the US economy in the first quarter of this year. While the data has been likely affected by the harsh winter, other indicators suggest that economic recovery is indeed uneven.

Oil had additional boost from prospects for lower production. Baker Hughes reported that US drillers decreased the number of rigs last week despite speculations that they would add more.

August futures for gold ticked up 0.2 percent to $1,191.20 per troy ounce as of 21:21 GMT on COMEX today. July futures for WTI crude oil jumped 4.44 percent to $60.24 per barrel on NYMEX. Contract for Brent crude surged 4.57 percent to $65.44 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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