Oil is trading lower today after yesterday's rally driven by a broadly weaker U.S. dollar after the FED comments. The Federal Reserve, although removing the 'patient' wording from its minutes, lowered forecasts on economic growth and inflation, which led to a sharp drop in the dollar. Before FED chair Janet Yellen spoke data showed that oil supplies in the U.S. rose to the highest level on record last week putting pressure on oil prices. U.S. crude oil inventories rose by 9.6 million barrels. Brent Crude lost -1.22%, currently trading at USD55.23 a barrel. On January 13th Crude set a low at USD45.19. West Texas Intermediate slumped -3.34% currently quoted at USD43.17.

Oil prices declined sharply in recent months as worldwide supply exceeds demand in a period of low global economic growth, pushing stockpiles to record highs and weighing on prices.

Gold is trading lower after yesterday's rally declining today from an intraday high of USD1.177.60. In yesterday's statement following the interest rate decision FED chair Janet Yellen said that the FED has not yet decided on the timing of a rate hike but it could happen at any FOMC meeting this year. The bank will have a close eye on international developments before hiking rates. This leaves the door open for a more flexible policy and the option to move later than June.

As a strong U.S. dollar and the prospect for higher U.S. rates weigh on the precious metal - as gold is dollar-denominated and not yield-bearing - yesterday's FED comments lend support to gold.

Gold is currently quoted at USD1,164.50, -0,23% a troy ounce. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40. On Wednesday last week gold traded as low as USD1,147.30, a three-month low.

BLOOMBERG
The Way Gold Prices Are Set is Changing Forever

(Bloomberg) -- Almost a century of tradition will disappear from the gold market as technology takes over.

Thursday will be the last day that traders at four banks agree by phone twice-daily prices used by miners to central banks to deal and value bullion. Gold will be the last precious metal to drop the London fixings after silver, platinum and palladium made way for electronic auctions last year.

More firms able to participate in the benchmark will make the $18 trillion global market more transparent, said ICE Benchmark Administration, which will start running the LBMA Gold Price on Friday. Anyone can follow auctions online, rather than needing a line to a fixing dealer.

Source: http://www.bloomberg.com/news/articles/2015-03-18/gold-loses-century-of-tradition-to-technology-in-setting-prices

REUTERS

EU's Schulz warns before summit Greek finances are 'dangerous'

(Reuters) - European Parliament President Martin Schulz said on Thursday, shortly before EU leaders meet in Brussels, that Greece's financial situation was "dangerous" and it needed two to three billion euros in the short term to avoid bankruptcy.

"Time is short," Schulz told Deutschlandfunk radio just hours before European Union leaders discuss Greece's bailout at their summit. "In the short term, two to three billion (euros) are needed to keep to the existing obligations," he said.

Source: http://www.reuters.com/article/2015/03/19/us-eurocrisis-greece-germany-schulz-idUSKBN0MF0MV20150319

BLOOMBERG

Norway Signals Reduction After Unexpectedly Holding Rate

(Bloomberg) -- Norway's central bank unexpectedly left interest rates unchanged and signaled it's prepared for more pronounced monetary easing to protect the economy against a plunge in oil prices. The krone surged.

The overnight deposit rate was kept at 1.25 percent, the Oslo-based bank said. The decision was forecast by only one of 19 economists surveyed by Bloomberg, while the remainder estimated a cut. The bank predicted its rate may drop to as low as 0.95 percent in the first quarter of next year, versus a December forecast of 1.13 percent. The krone gained 1.96 percent to 8.6979 per euro as of 10:20 a.m.

"If economic developments ahead are broadly in line with that projected, there are prospects for a reduction in the key policy rate," Norges Bank Governor Oeystein Olsen said in a statement. He's scheduled to speak at a press conference at 10:30 a.m. in the Norwegian capital.

Source: http://www.bloomberg.com/news/articles/2015-03-19/norway-central-bank-signals-cut-after-unexpectedly-holding-rate

(raw materials / closing price /% change)

Oil 44.66 +2.76%

Gold 1,167.80 +1.43%