Wall Street and commodities gained a day after the US Federal Reserve flagged that there are fewer interest rate increases ahead this year than previously thought.
During the latest two-day Federal Open Market Committee meeting that ended on Wednesday, Fed policy makers lowered their expectations for rate increases this year. The median projection of 17 Fed officials is for the fed funds rate to rise to 0.875 per cent by the end of 2016.
"You have seen a shift this time, in most participants' assessments of the appropriate path for policy," Fed Chair Janet Yellen said at a press conference on Wednesday, according to Bloomberg.
"That largely reflects a somewhat slower projected path for global growth, for growth in the global economy outside the United States, and for some tightening in credit conditions in the form of an increase in spreads."
The US dollar weakened on the prospect of fewer US rate hikes, bolstering the appeal of commodities including oil, gold and copper, which are denominated in the currency. That also helped boost the appeal of mining stocks.
"With loose monetary policy and low rates, we'll have a lot of money out there in the system and demand will be higher," Bob Haberkorn, a senior market strategist at RJO Futures in Chicago, told Bloomberg.
"The miners are benefiting from this because the trends on the physicals do look to be higher, whether it be gold, platinum, silver, copper or any of the other base metals for that matter."