Industrial Metals Fall as Dollar Gains on Recovery SignsAlex Davis
Copper fell with most industrial metals as the dollar strengthened after data showing signs of the improving U.S. economy, making commodities priced in the greenback more expensive for buyers outside the country.
Copper in London fell as much as 0.5 percent, while nickel and zinc also declined. The U.S. economy grew 3.9 percent in the three months through June, according to a Bloomberg survey of economists before government data tomorrow. Orders for goods meant to last at least three years climbed by a record 22.6 percent in July, the Commerce Department said yesterday.
The increasing U.S. dollar on the back of positive macro-economic data was one factor weighing on metals prices, said Helen Lau, Hong Kong-based analyst at UOB Kay Hian Ltd.
The Bloomberg Dollar Spot Index, which tracks the U.S. currency versus 10 global peers, traded at 1,029.12 after reaching 1,031.86 yesterday, the highest since February.
Copper for delivery in three months on the London Metal Exchange was 0.4 percent lower at $7,023 a metric ton by 3:02 p.m. in Hong Kong.
In New York, copper futures for December dropped 0.4 percent to $3.1995 a pound, while in Shanghai the metal for October delivery lost 0.6 percent to close at 50,300 yuan ($8,184) a ton.
On the LME, nickel fell 0.4 percent to $18,880 a ton, while aluminum was little changed at $2,082.75 a ton after reaching an 18-month high yesterday. Zinc dropped 0.5 percent to $2,347 a ton. Lead and tin also fell.