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Metals Rally at Expense of Weaker Dollar

March 3, 2016 at 17:45 by Vladimir Vyun

Metals were on the rise today after the release of a bunch of poor economic reports from the United States. Most of US indicators were bad and that hurt the dollar. As metals usually trade inversely to the US currency, it was not a surprise to see the market of metals to log a rally.

Another reason for the strong performance of metals as well as many other commodities were expectations of stimulus in Europe and China. The European Central Bank will hold a policy meeting next week, and there is a strong possibility that the ECB will ease its already very accommodative monetary policy. China’s central bank has already attempted to stimulate its economy by lowering the reserve requirement ratio for banks.

Futures for delivery of gold in April climbed 1.22% to $1,256.9 per troy ounce as of 17:37 GMT on COMEX today. May contract for silver advanced 1.05% to $15.18 per ounce. Spot price for platinum gained 0.77% to $941.87 per ounce, and palladium rose as much as 3.55% to $535.93 per ounce. May copper was up 1.01% to $2.203 per pound.

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