Metals Advance Amid Dollar Weakness

By Justin Yang Features Dow Jones Newswires

Gold prices rose Tuesday, recovering from the prior day's tumble as the dollar weakened ahead of comments from Federal Reserve Chairwoman Janet Yellen.

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The precious metal was up 0.6% at $1,251.90 a troy ounce in Tuesday morning trading. Copper, meanwhile, gained 0.34% to $5,821 a metric ton. The weaker dollar helped bolster both metals, said Daniel Briesemann, an analyst with Commerzbank.

The WSJ Dollar Index, which measures the dollar against a basket of currencies was down 0.36% to 88.42. The weaker greenback makes dollar-denominated commodities including metals more affordable for buyers holding other currencies.

What many viewed as an erroneous trade sent gold into a steep decline Monday, according to an ING note. That spurred "bargain hunting" that helped gold recoup some of its losses, said Robin Bhar, head of metals research at Société Générale.

Gold investors are watching for Ms. Yellen's speech in London Tuesday for hints of whether the U.S. will further normalize interest rates, Mr. Bhar said.

Among base metals, aluminum was flat at $1,865 a metric ton, zinc jumped 1.27% to $2,745 a metric ton, lead rose 0.87% to $2,269 a metric ton, tin increased 0.14% to $19,325 a metric ton and nickel was up 0.94% to $9,110 a metric ton.

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Among precious metals, platinum was up 0.65% to $923.50 a troy ounce, palladium rose 0.29% to $870.50 a troy ounce and silver increased 0.54% to $16.69.

Write to Justin Yang at justin.yang@wsj.com

(END) Dow Jones Newswires

June 27, 2017 06:15 ET (10:15 GMT)