Prices for metals mixed amid weaker dollar
NEW YORK — A weaker dollar is lending some support to metals prices.
Gold closed slightly higher Tuesday, while other metals were narrowly mixed as the dollar lost ground against other major currencies. A decline in the dollar makes commodities cheaper for foreign investors. Gold in particular benefits from a weaker greenback because the metal is used as a hedge against inflation, which can be triggered by a falling dollar.
With investors feeling a bit more confident about the economy, money flowed out of safe-haven assets like the dollar and government bonds and back into stocks and some commodities after a sharp selloff the day before.
Investors found some reassurance in a report showing that consumer confidence is rising in Germany, Europe’s largest economy. Meanwhile, a handful of better-than-expected earnings reports from U.S. retailers helped ease some of investors’ concerns that the American consumer won’t be able to give the economy a strong recovery.
Gold for December delivery rose $3.40 to $939.20 an ounce on the New York Mercantile Exchange. October platinum rose $9.50 to $1,232.10 an ounce.
Silver and copper posted modest losses, a sign that investors are still a little hesitant to make big bets on a robust economic rebound, especially considering the big gains in metals prices in recent weeks.
September silver dipped 1.5 cents to $13.96 an ounce, while December copper futures shed 1.1 cents to $2.7745 a pound. Silver prices are still up 10.4 percent since early July, while copper is up 25.5 percent.
Metals sold off sharply on Monday as investors fled assets that rely heavily on a healthy economy, fearful that consumers’ reluctance to spend will hinder economic growth.
Grain prices were also little changed Tuesday on the Chicago Board of Trade.
December wheat futures slipped 1.25 cents to $4.9825 a bushel, while December corn added less than a penny to $3.2250 a bushel.
November soybeans rose 4.5 cents to $9.59 a bushel.
Among other soft commodities, prices for cotton, coffee and sugar fell, while cocoa prices rose.
Oil prices rebounded on the Nymex, rising $1.44 to settle at $69.19 a barrel after losing 5 percent over the past two trading sessions. Investors are keeping a close watch on the year’s first hurricane. So far, projections do not show Hurricane Bill entering the Gulf of Mexico, where it could wreak havoc on oil and natural gas operations.
Elsewhere on the Nymex, gasoline for September delivery rose 4.87 cents to settle just above $2 a gallon and heating oil gained 3.85 cents to $1.865 a gallon.
Bucking the trend in energy futures, natural gas for September delivery fell 4.7 cents to $3.115 per 1,000 cubic feet. Natural gas prices, which stand at seven-year lows, have consistently underperformed the rest of the energy market this year.
- After another 14-month low overnight, dollar decline eases following subpar bank earnings
- Oil above $75 at fresh 1-year high in midday European trade as stocks, dollar gain
- Oil jumps to above $75 in Asia, fresh 1-year high, as stocks, US dollar fuel gains
- Oil jumps to near $76 in Asia, fresh 1-year high, as stocks, US dollar fuel gains
- Crude settles above $75 a barrel exactly one year after it last did so
- Investors shun safe dollar as signs of global recovery send them scurrying for better returns
- With the dollar giving up buying power by the day, crude draws inflation fearing investors
- Dollar hits 14-month low against euro on Fed official's comments, improving appetite for risk
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