London---Commodities mostly rose this week in holiday-shortened trade, with oil and base metal prices rebounding as the dollar sank on weak US economic growth and the uncertain interest rate outlook.
The world's biggest economy posted first quarter GDP growth of just 0.2 percent, well below the 1.0 percent rate forecast by analysts and sharply down from the 2.2 percent pace in the previous three months.
"On the macroeconomic front, we received poor US economic data which added further pressure to the US dollar," noted Sucden analyst Myrto Sokou.
"The softer dollar provided upside momentum for most commodity prices."
The euro soared to a two-month high of $1.1285 on Friday in the wake of the poor data, and after the US Federal Reserve also left open the timing of an interest rate hike. A weaker greenback makes dollar-priced commodities cheaper for buyers using stronger currencies, which tends to stimulate demand.
- Oil hits 2015 highs -
OIL: World oil prices advanced to new 2015 peaks, winning traction from the first drop in US stockpiles for six months, and as the dollar weakened against the euro.
"Crude oil built on gains made after Wednesday's inventory data to make new 2015 highs," said CMC Markets analyst Jasper Lawler.
The latest jump came after the US Department of Energy inventory report showed a 500,000-barrel drop in petroleum stocks to 61.7 million barrels at the key Cushing, Oklahoma trading hub.
While the decline was modest, it marked the first drop since late November. Traders are taking the decline as a sign producers are cutting back at key US petroleum sites, analysts said.
Both oil contracts rose by about a fifth through April owing to several factors, including concerns about unrest in Yemen, the weakening dollar and fewer US rigs in operation to produce the black gold.
However, prices remain well down after plunging almost 60 percent between June and January on the back of a global supply glut and ramped up production.
By Friday on London's Intercontinental Exchange, Brent North Sea crude for delivery in June rose to $66.19 a barrel from $65.21 the previous week.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for June rallied to $59.12 compared with $57.22.
PRECIOUS METALS: Gold fell, dragging most precious metals lower as dealers digested the US rate outlook.
The Federal Reserve left open its timeframe for a rise in ultra-low interest rates on Wednesday, following a winter slowdown that stalled US economic growth.
The Federal Open Market Committee (FOMC) said it believed the first-quarter slump reflected "in part" transitory factors, and that the economy should resume expanding at a "moderate pace".
But after more than a year pointing to mid-2015 for when it would begin raising the federal funds rate, the FOMC stopped offering its "forward guidance" and made clear it would wait for more signs of economic progress before the first rate rise in nearly nine years.
AFP
