Commodities Rally as Fed Maintains Accommodative Stance

Oil prices quickly shrugged off the bigger-than-expected crude inventory build and rebounded later in the day as the US dollar was dumped after the Fed signaled no plan for tightening. Policymakers will continue to reinvest after QE2 expires in June. The front-month contract for WTI crude oil initially plunged to a 4-day low of 110.71 before settling at 112.76, up +0.49%. Brent crude jumped and closed above 125 for the first time in more than 2 weeks. Precious metals were also bolstered by weak USD with gold surging to fresh record highs.

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Commodities Rally as Fed Maintains Accommodative Stance