Commodities: Gold and oil prices rise amid disappointing US data

LONDON (ShareCast) - Gold prices advanced to their highest levels in three weeks on Wednesday as disappointing US data encouraged belief that the Federal Reserve will take its time before boosting interest rates. Gold for April delivery advanced 0.5% to $1,197.00 an ounce. IG (LSE: IGG.L - news) analyst Chris Beauchamp said: "Gold touched the magic $1200 level this afternoon, buoyed by the risk-off mentality that has taken hold over the past two sessions." According to the US Commerce Department, total durable goods orders including transportation items receded 1.4% in February compared to 0.4% rises in January.

Meanwhile, Brent futures rose 2.5% to $56.50 at the end of Wednesday's session, while ICE WTI futures increased 3.6% to $49.20.

CMC Markets analyst Jasper Lawler said: "US crude oil inventories rose for an 11th consecutive week, the longest on record trimming some the daily gain in crude oil. Brent crude oil has held above $54.50 per barrel for the past three days and could be setting up for a push pack towards $58 if dollar weakness is maintained." Over on LME, three-month copper futures decreased 0.1% to $6,112.00 a tonne.