Copper Prices Boosted by Weaker Dollar to Near Two-Month High

By Ira Iosebashvili Features Dow Jones Newswires

Copper prices rose to a near two-month high Wednesday, lifted by a weaker dollar.

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Copper for September delivery rose 0.4% to $2.6725 a pound on the Comex division of the New York Mercantile Exchange, the highest level since May 1.

The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently down 0.3% to 88.05. A weaker U.S. currency makes dollar-denominated commodities such as metals more affordable for buyers holding other currencies.

The falling dollar boosted gold and silver, as well. Gold for August delivery rose 0.2% to $1,249.80 a troy ounce, while September silver was up 1% to $16.83 a troy ounce.

Political uncertainty also helped lift gold. Senate Republican leaders abruptly postponed a vote Tuesday on a sweeping health-care bill until after Congress' July 4 recess. Many investors see the vote as a gauge of how difficult it will be for President Donald Trump to push through pledged fiscal stimulus and infrastructure spending.

The combination of a weaker U.S. currency and nervous stock investors may continue pushing gold higher in coming sessions, said Peter Hug, global trading director at Kitco Metals, in a note to clients.

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(END) Dow Jones Newswires

June 28, 2017 13:19 ET (17:19 GMT)