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Precious Metals Soar After Fed Chairwoman’s Dovish Speech

March 29, 2016 at 20:29 by Vladimir Vyun

Gold and other precious metals soared after Janet Yellen, Federal Reserve Chairwoman, delivered a rather dovish speech on Tuesday. She voiced concern about the negative influence of low oil prices as well as slowing growth in China and its impact on the global economy. She then spoke about necessity for caution in raising interest rates. The Chairwoman explained that the low interest rates (even after the start of tightening) could make it hard for the Fed to add stimulus if monetary firming starts damaging the economy.

The comments sent the dollar tumbling down. As it often happens, precious metals profited from the weakness of the US currency, logging a strong rally.

June contract for gold gained 1.73% to $1,243.1 per troy ounce as of 20:23 GMT on COMEX today. May silver was up 1.02% to $15.35 per ounce. Spot price for platinum rose as much as 2.48% to $969.23 per ounce. Palladium rallied 1.8% to trade at $578.5 per ounce.

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

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