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Ukrainian Troubles Lead to Rally of Various Commodities

May 5, 2014 at 10:27 by Vladimir Vyun

The escalating conflict in Ukraine led to rally of various commodities, including gold, crude oil and wheat. Clashes continues between Ukrainian military forces and anti-government militants in the eastern regions of the country, while violent conflict in the major Ukrainian port Odessa left several dozen people dead (from about 50 to 150 according to various reports).

The reasons for the rally were different for each raw material. Gold profited from the bad news in its role as a safe asset, wheat rallied as Ukraine is one of the biggest exporters, while crude oil gained on concerns about possible involvement of Russia in the situation, which may lead to supply disruptions.

June futures for delivery of gold gained $10.80 (0.83 percent) to $1,313.70 per troy ounce as of 10:24 GMT on COMEX today. Contract for WTI crude oil went up $0.57 (0.57 percent) to $100.33 per barrel on NYMEX. July futures for wheat surged as much as $0.1125 (1.57 percent) to $7.2725 per pound on CBoT.

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

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