Drop in consumer confidence weighs on commodities
NEW YORK — Prices for most commodities fell Tuesday amid a stronger dollar and a report suggesting consumers are still nervous about the economy.
Metals and energy prices took the biggest beatings after The Conference Board said consumer confidence weakened more than expected in July. Sagging consumer confidence means Americans are likely keeping their wallets shut, which could hurt the economy’s ability to rebound. Prices for commodities suffer when demand for basic materials and other goods is weak.
Meanwhile, the dollar’s safe-haven appeal lured investors away from other major currencies. A stronger greenback hurts foreign demand for commodities, which are priced in U.S. dollars.
Gold for December delivery fell $14.60 to $941.70 an ounce on the New York Mercantile Exchange.
September silver shed a quarter to $13.74 an ounce, while October platinum dropped $25.90 to $1,196.60 an ounce.
September copper futures dipped 2.45 cents to $2.5205 a pound. Bucking the trend, aluminum prices rose slightly.
The unexpected drop in consumer confidence also put a damper on stocks, sending the Dow Jones industrials and the Standard & Poor’s 500 index down in late afternoon trading. Like commodities, stocks had been on an upswing since earlier this month due to a string of better-than-expected corporate earnings reports. Analysts have been anticipating a pullback in both stocks and commodities following their recent run.
Oil prices retreated on the Nymex, putting the brakes on a two-week rally as investors feared the latest economic data suggested consumers won’t increase their energy spending any time soon.
Light, sweet crude for September delivery fell $1.15 to settle at $67.23 a barrel. Before Tuesday, prices had risen 14 percent since July 10.
In other Nymex trading, gasoline for August delivery fell 2.41 cents to $1.9106 a gallon and heating oil lost 2.99 cents to $1.7647 a gallon.
Natural gas for August delivery fell 6.9 cents to settle at $3.535 per 1,000 cubic feet.
Grain prices were mixed on the Chicago Board of Trade.
September wheat futures lost 4.25 cents to $5.1625 a bushel, while corn for September delivery slipped 1.75 cents to $3.2050 a bushel.
November soybeans jumped 20.5 cents to $9.27 a bushel.
Among other soft commodities, prices for cotton and coffee fell, while cocoa prices rose.
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