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Weaker Dollar Translates into Higher Commodity Prices

May 12, 2011 at 21:03 by Vladimir Vyun

Commodities rallied today as falling dollar increased demand for alternative assets. The US currency fell 0.4 percent versus the basket of six major currencies. Gains of stocks also made traders look more favorable on commodity market.

The S&P 500 Index rose 0.5 percent to 1,348.08 by 13:20, following the drop by 0.8 percent. The Dow Jones Industrial Average advanced 0.5 percent to 12,695.12 after it dropped 0.7 percent earlier today. The Thomson Reuters/Jefferies CRB Index of 19 raw materials also gained, while the MSCI World Index of equities.

June contract for crude oil delivery rose $0.76 to $98.97 per barrel on NYMEX. Futures for delivery of corn in July advanced $0.0325 (0.5 percent) to $6.805 per bushel by 13:15 on CBoT. Contract for soybean delivery in July climbed $0.11 (0.8 percent) to $13.4275 per bushel. June futures for delivery of gold gained $5.40 (0.4 percent) to $1,506.80 as of 13:41 on COMEX. July futures for silver delivery dropped $0.718 (2 percent) to $34.797 per ounce.

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

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