Metals Advance Amid Dollar Weakness

By Ira Iosebashvili and Justin Yang Features Dow Jones Newswires

Copper prices rose to their highest level in nearly two months Tuesday, buoyed by a weaker dollar.

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Copper for September delivery rose 0.9% to $2.6615 a pound on the Comex division of the New York Mercantile Exchange, the highest settlement since May 1.

The euro rallied against the dollar and U.S. government bond yields rose, after European Central Bank President Mario Draghi expressed confidence that eurozone inflation would ultimately pick up as growth broadens, and hinted that the bank might start winding down its large monetary stimulus.

The WSJ Dollar Index, which measures the dollar against a basket of currencies, was down 0.5% to 88.29. A weaker U.S. currency makes dollar-denominated commodities including metals more affordable for buyers holding other currencies.

In precious metals, gold for August delivery closed up less than 0.1% at $1,246.90 a troy ounce on the Comex division of the New York Mercantile Exchange.

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.

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Write to Ira Iosebashvili at ira.iosebashvili@wsj.com

(END) Dow Jones Newswires

June 27, 2017 17:37 ET (21:37 GMT)