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Mar. 21, 2014 11:30AM PST
Following a week of steady declines, commodities were up slightly today.
Precious metals were hit hard this week as comments from the US Federal Reserve strengthened the dollar. Meanwhile, tension between the United States and Russia impacted oil prices. However, commodities prices were up slightly today.
On the whole, Natixis (EPA:KN) analyst Abhishek Deshpande put it best with the statement, “[t]he uncertainty is definitely back.”
Gold hit a six-month high on Monday on the back of Ukraine tensions, but as focus shifted to US economic data, the metal fell. Today, the yellow metal managed to rise 0.7 percent, or $9.36, hitting $1,337.30 per ounce; however, it is still on track for its biggest weekly drop since November, as per Reuters.
Also gaining today was silver, which rose 0.6 percent, to $20.39 an ounce.
Similarly, copper for delivery in three months on the London Metal Exchange today gained 0.5 percent, or $32.31, reaching $6,461.75 per metric ton, according to The Wall Street Journal. The rise came as some investors took advantage of lower costs to buy and others decided to close out short options.
“Copper looks somewhat oversold,” William Adams, head of research at FastMarkets.com, told the news outlet. “There may well be some bargain hunting and that could cause short-covering and option-related buying.”
Copper for May delivery rose $0.05 on New York’s COMEX, hitting $2.97 a pound, states The Globe and Mail.
Brent crude for May delivery rose 94 cents, reaching $107.39 per barrel today, Reuters notes; even so, it is on track for a fourth weekly loss. Today’s rise was brought about by US sanctions against Russia, which are raising fears of supply disruptions.
Related reading:
Who Killed the Gold Rally?
Beware the Ides of March: Silver Hits Five-week Low