Precious metals slip, oil rallies

NEW YORK — Precious metals finished a choppy session slightly lower Monday as the dollar showed some early strength against the euro.

Energy prices climbed after a militant attack on an oil platform in Nigeria, Africa’s biggest crude producer. Trading overall was quiet, with no economic data to pull the market one way or another.

“The bottom line is we’re just lacking an impetus right now,” said Dave Meger, a gold analyst at Alaron. “We’re in a demand lull, the summer doldrums.”

A slight uptick in the dollar against the euro early in the day put some pressure on precious metal prices, Meger said. Those gains came as China’s chief central banker assured markets there would be no sudden change in its policy on foreign exchange reserves. In March Zhou Xiaochuan had called for a new global reserve currency to replace the dollar.

By the afternoon, the dollar was down against most other major currencies, and precious metals prices closed well off their earlier lows. Investors tend to use gold as a hedge against inflation and a weak dollar, and other precious metals often benefit from gold’s gains.

The dollar has fallen sharply since early March as the outlook on the economy improved and investors sought riskier assets. However the dollar has recovered some ground in recent sessions as investors seek more safety and doubts grow about an economic recovery.

Analysts say commodity prices, which had run up in response to the falling dollar, may stay relatively range-bound for the time being as the dollar wavers and investors look for clearer signs on where the economy is headed.

Though the week is shortened by the Independence Day holiday on Friday, investors will be looking to key data on the labor market, as well as on consumer sentiment and manufacturing, for more direction on the economy.

On the New York Mercantile Exchange, September silver fell 18.1 cents to $13.9750 an ounce, while July platinum dropped $18.80 to $1,184.20 an ounce.

Gold prices were relatively flat, slipping 30 cents to settle at $940.70 an ounce.

September copper futures were slightly higher, rising 1.7 cents to $2.3260 a pound.

Oil prices jumped above $71 a barrel on the Nymex despite a report from the International Energy Agency forecasting a slow rebound in global energy demand. The increase in prices came after Nigerian militants damaged and partly shut down an offshore oil platform owned by Royal Dutch Shell PLC.

Light, sweet crude for August delivery rose $2.33 to $71.49 a barrel.

On Wall Street, energy and material stocks benefited from the jump in oil prices and led the market higher. The Dow Jones industrials rose about 70 points in afternoon trading.

In other Nymex trading, gasoline for July delivery gained 6.13 cents to settle at $1.9358 a gallon. Heating oil rose 5.32 cents to settle at $1.7835 a gallon.

Grain prices declined on the Chicago Board of Trade a day ahead of a key crop report from the U.S. Department of Agriculture.

September wheat futures fell 5.25 cents to $5.5775 a bushel, while corn for September delivery shed 7.25 cents to $3.845 a bushel.

August soybeans lost 6 cents to $11.22 a bushel.