Commodities Higher as US Dollar Weakens
Commodities were higher in the European trading session, as investors capitalized on a weaker US Dollar and improved risk sentiment, to snap up nicely priced commodities.
Following heavy declines on Friday and Monday due to the failure of the Doha Meeting to reach an agreement to freeze oil production, oil prices climbed higher today, rising more than 1% at one point in the European session. The increase in crude oil prices can be attributed to a labour strike in Kuwait reducing output and bottom feeders, taking advantage of the fall in the US dollar to snap up positions in the dollar-priced commodity. At time of writing, crude oil was up 053%, with a barrel of crude oil trading at $41.41.
Gold and Silver
Precious metals also posted strong gains, enjoying safe haven status amongst investors uncertain about the direction of the global economy. Having posted their strongest quarterly gains in 30 years in the first three months of 2016, gold was up 0.73% with a troy ounce valued at $1244.00, whilst Silver rocketed up 2.63%, with a troy ounce valued at $16.880.
Prices of Natural Gas edged higher for the second consecutive day as colder weather forecasts over the next two weeks indicate a higher than average consumption for the heating fuel. Natural Gas was up 0.57%, trading at $1.951 at time of writing.
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