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Weak Dollar Continues Provide Support for Commodity Market

March 24, 2015 at 12:28 by Vladimir Vyun

The majority of commodities, including precious metals and crude oil, were rising during the Tuesday’s trading session. The reason for the rally remained the same as before — the weakness of the US dollar.

The greenback received a serious hit after the Federal Reserve made a statement that was perceived as dovish by market participants. US economic indicators were not helping the matter, missing analysts’ expectations. Positive macroeconomic data from Europe that fueled the rally of the euro added to the woes of the US currency.

It is important to remember that over longer term fundamentals look much more favorable to the dollar than to the euro. This means that the rally of raw materials may come to an end rather abruptly. Yet for now the commodity market benefits from the events on the currency market.

April futures for delivery of gold went up 0.48 percent to $1,193.40 per troy ounce as of 12:22 GMT on COMEX today. May contract for silver added 0.56 percent to $16.99 per ounce. Futures for WTI crude oil gained 0.56 percent to $47.73 per barrel on NYMEX. Brent crude rose 0.38 percent to $56.13 per bare on ICE.

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