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19 Sep 2013
Commodities surge as ‘taper of’ leads to ‘risk on’
FXstreet.com (Athens)- Unsurprisingly, the commodities skyrocketed on late Wednesday, as Fed hit the “Risk-on” button, mentioning that “it would leave its monetary stimulus program unchanged, a policy largely seen as supporting commodity prices.”
Tapering being absolutely ‘tapered’ indeed; Risk holds on, commodities soaring across the board
FOMC release as of “the Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases,” boosted risk-appetite, dragged down the greenback and led the markets to a risk-appetite mood. Precisely, Crude oil futures settled sharply higher on Wednesday, surging late in the session after the FOMC release. Brent oil for November delivery settled $2.41 per barrel higher at $110.60. The previous session, the Brent had settled at a six-week low. Furthermore, U.S. crude for October delivery settled $2.65 per barrel higher, or 2.51 percent, at $108.07 a barrel after trading as high as $108.25. U.S. crude's discount to Brent narrowed to $2.64 per barrel, its smallest since Aug. 16.
Gold surged more than 4 percent to above $1,360 an ounce on Wednesday after the U.S. Federal Reserve's unexpected decision to continue buying bonds unleashed bullion's biggest one-day buying spree since June 2012. In addition, the Spot gold was up 4.2 percent to $1,364.26 an ounce its biggest one-day percentage gain since June 1, 2012. It rebounded about $70, or 5.5 percent, from a six-week low of $1,291.34 set earlier in the session. U.S. Comex gold futures for December settled down $1.80 an ounce at $1,307.60 prior to the Fed's news. Among other precious metals, silver rose 6.4 percent to $23.06 an ounce.
Tapering being absolutely ‘tapered’ indeed; Risk holds on, commodities soaring across the board
FOMC release as of “the Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases,” boosted risk-appetite, dragged down the greenback and led the markets to a risk-appetite mood. Precisely, Crude oil futures settled sharply higher on Wednesday, surging late in the session after the FOMC release. Brent oil for November delivery settled $2.41 per barrel higher at $110.60. The previous session, the Brent had settled at a six-week low. Furthermore, U.S. crude for October delivery settled $2.65 per barrel higher, or 2.51 percent, at $108.07 a barrel after trading as high as $108.25. U.S. crude's discount to Brent narrowed to $2.64 per barrel, its smallest since Aug. 16.
Gold surged more than 4 percent to above $1,360 an ounce on Wednesday after the U.S. Federal Reserve's unexpected decision to continue buying bonds unleashed bullion's biggest one-day buying spree since June 2012. In addition, the Spot gold was up 4.2 percent to $1,364.26 an ounce its biggest one-day percentage gain since June 1, 2012. It rebounded about $70, or 5.5 percent, from a six-week low of $1,291.34 set earlier in the session. U.S. Comex gold futures for December settled down $1.80 an ounce at $1,307.60 prior to the Fed's news. Among other precious metals, silver rose 6.4 percent to $23.06 an ounce.