Metal, energy prices rally as dollar weakens
NEW YORK — Prices for copper, silver and other metals roseThursday as a weaker dollar and the promise of an economic recovery lured investors to commodities.
Commodities prices advanced despite Thursday’s disappointing retail sales report that showed consumers are still too worried about their jobs to spend freely. Government reports showed retail sales unexpectedly fell in July, while the number of first-time claims for unemployment were higher than projected.
But investors looked past the day’s news, and continued buying in response to the Federal Reserve’s more positive assessment of the economy that helped carry stocks and commodities higher on Wednesday.
“These markets are hanging in there,” said Matt Zeman, head trader at LaSalle Futures in Chicago. “Equities have been very resilient and commodities have been following suit.”
Major stock indicators wavered, but managed to hold on the prior day’s big gains. Commodities got an extra push from a weaker dollar, which fell further against the euro and the British pound. Commodities are priced in U.S. dollars so foreign investors tend to buy more when the greenback is falling.
On the New York Mercantile Exchange, September copper futures rose 9.05 cents, or 3.2 percent, to $2.9140 a pound. Aluminum prices jumped 4 percent.
Among precious metals, September silver soared 40.2 cents, or 2.7 percent, to $14.9870 an ounce, while October platinum rallied $28.30, or 2.3 percent, to $1,272.70 an ounce.
Gold for December delivery added $4 to $956.50 an ounce.
A weaker dollar also lured investors to energy commodities. Oil prices gained 36 cents to settle at $70.52 a barrel.
Heating oil rose 1.07 cents to $1.9028 a gallon, while gasoline for September delivery gave up less than a penny to close at $2.0192 a gallon.
Natural gas prices, which have underperformed the rest of the energy market this year, lost 14.3 cents to $3.336 per 1,000 cubic feet.
Among soft commodities, cotton and cocoa were higher, while coffee and sugar prices declined.
Soybean and corn futures retreated on the Chicago Board of Trade after two days of gains.
November soybeans dropped 25.25 cents to $10.1875 a bushel, while corn for December fell 4.25 cents to $3.32 a bushel.
December wheat futures lost 8.5 cents to $5.0925 a bushel.
Related News
Metals slip as dollar manages to move higher after conclusion of Fed meeting, oil sinksSeptember 23rd, 2009 Gold slips as dollar manages to move higherNEW YORK — The Federal Reserve's upbeat assessment of the economy Wednesday did little to stir commodities. Prices for oil, gold and other metals finished lower, while the dollar seesawed as the Fed said the pace of economic activity has "picked up" since its last meeting in August.
Gold, other metals little changed as caution pervades market; oil prices fallAugust 26th, 2009 Gold, other metals little changed, oil prices fallNEW YORK — Gold and other metals were little changed in quiet trading Wednesday as cautious investors refrained from making big bets on commodities. Energy prices fell, while agriculture futures were mixed.
Gold prices fall as dollar shows some strength, other metals, oil riseAugust 24th, 2009 Gold falls on dollar strength, other metals riseNEW YORK — A stronger dollar hurt gold prices Monday, but other metals finished slightly higher on hopes that demand for materials will pick up as the economy improves. Gold for December delivery dropped $11 to $943.70 an ounce on the New York Mercantile Exchange as the dollar rose against the euro and the British pound.
Metals prices mixed as investors weigh dollar weakness, concerns about China; oil surgesAugust 19th, 2009 Metals mixed, oil surges on drop in inventoriesNEW YORK — Prices for metals were mixed Wednesday, with gold getting some support from a slightly weaker dollar, and other metals falling on concerns over a potential drop in demand from China. Gold for December delivery added $5.60 to $944.80 an ounce on the New York Mercantile Exchange, as the dollar slid against the Japanese yen and the British pound.
Prices for precious, industrial metals narrowly mixed as weaker dollar lends some supportAugust 18th, 2009 Prices for metals mixed amid weaker dollarNEW 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.
Weaker dollar, more upbeat outlook on economy helps lift metals; grains up after USDA reportAugust 12th, 2009 Metals rise on weak dollar, upbeat outlookNEW YORK — A weaker dollar and a more upbeat outlook on the economy sent prices for gold, copper and other metals slightly higher. Investors put their money to work in stocks and commodities Wednesday, and pulled out of safe-haven assets like Treasurys and the U.S.
Most metals rise amid ongoing weakness in US dollar; gold dips on profit takingAugust 5th, 2009 Metal prices rise slightly on dollar weaknessNEW YORK — Most precious and industrial metals rose Wednesday, building on recent gains as the dollar extended its losses. Gold prices, however, finished slightly lower as investors collected some profits.
Metals rise as dollar falls, investors take risks ahead of earnings; energy futures weakenJuly 13th, 2009 Gold, other metals rise on as dollar weakensNEW YORK — Prices for gold and other metals rebounded Monday as investors snapped up riskier assets hoping that earnings reports will show an improving economy. A weaker dollar also helped push commodity prices higher.
Slide in commodity prices accelerates as doubts about economic recovery growJuly 8th, 2009 Commodities slide on doubts about economic reboundNEW YORK — Metals and energy prices are extending their losses amid growing anxiety about the potential for a quick and robust economic recovery. Investors are moving out of risky assets like commodities and stocks and seeking shelter in traditionally safe-haven investments such as the dollar and Treasurys.
Prices for gold, other metals bounce back as dollar retreats; energy futures falterJuly 1st, 2009 Gold, other metals rebound on falling dollarNEW YORK — Prices for gold and other metals rebounded Wednesday as the dollar lost ground against other major currencies. The dollar declined as stocks moved higher after reports showing stabilization in the manufacturing sector both in the U.S.
Precious metals slightly lower amid early gains in dollar against euro; oil jumpsJune 29th, 2009 Precious metals slip, oil ralliesNEW 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.
Commodities trade mixed as investors weigh falling dollar against economic concernsJune 26th, 2009 Precious metals slightly higher as dollar fallsNEW YORK — Precious metals moved slightly higher Friday, supported by more weakness in the dollar. Other commodities like base metals and oil declined as investors refrained from making big bets on economically sensitive materials following a report suggesting consumer demand is still soft.
Metals finish slightly higher amid early weakness in dollar; some pullback after Fed meetingJune 24th, 2009 Metals finish higher amid early weakness in dollarNEW YORK — Gold and other metals gave up some ground Wednesday after the Federal Reserve noted that inflationary pressures would likely remain in check. Investors have been sending prices higher for oil, copper, grains and other commodities as a hedge against inflation.
Metals, energy prices higher as dollar weakness sends investors in search of inflation hedgeJune 12th, 2009 Gold, other commodities higher as dollar wanesNEW YORK — Most commodities are higher as weakness in the dollar sends investors in search of a shelter from inflation. The dollar is lower against the euro and the British pound amid more evidence that the economy's slide is abating.
Falling dollar helps push gold prices higher; positive economic data boosts oil, other metalsMay 4th, 2009 Gold prices rebound as dollar slipsNEW YORK — Gold prices rebounded Monday, moving higher as the dollar slipped against other currencies. The dollar was lower against the British pound and the euro on Monday as demand for the safety of the U.S.
Loading ...