Related News:
Copper Futures Advance After Dollar's Decline Boosts Appeal of Commodities
Copper prices rose in New York as the dollar’s decline enhanced the appeal of commodities as alternative assets.
The greenback fell to a 10-week low against a basket of major currencies. The Reuters/Jefferies CRB Index of 19 raw materials rose for the third straight day. Copper gained 4.7 percent last week as the dollar dropped for the fifth straight week.
“The dollar will probably keep coming down over the next few months, and it’s going to really help all commodities, especially the metals, move higher,” said Michael K. Smith, the president of T&K Futures & Options in Port St. Lucie, Florida.
Copper futures for September delivery rose 0.35 cent, or 0.1 percent, to $3.012 a pound on the Comex in New York. The price has climbed 26 percent in the past 12 months.
The metal fluctuated between gains and losses today as traders weighed the dollar’s slump against a report that showed economic growth slowed in China, the world’s biggest metal buyer. Gross domestic product expanded by 10.3 percent in the second quarter, compared with 11.9 percent in the first quarter.
“We did see weaker data out of China, but the fact is that 10 percent growth is still pretty strong,” Smith said. “The big picture is still positive.”
The metal also pared gains after a report showed manufacturing in the U.S. contracted in June by the most in a year and wholesale prices declined more than anticipated, supporting the Federal Reserve’s reduced forecasts for economic growth and inflation.
Data from the U.S. and China “confirmed fears that the economic recovery is slowing,” Alex Heath, the head of industrial-metals trading at RBC Capital Markets in London, said in a report.
On the London Metal Exchange, copper for delivery in three months fell $45, or 0.7 percent, to $6,680 a metric ton ($3.03 a pound).
Lead, tin and zinc also dropped on the LME. Aluminum rose, and nickel was unchanged.
To contact the reporter on the story: Millie Munshi in New York at mmunshi@bloomberg.net
Rate These Stories
Rate this Page