Weaker Dollar Boosts Copper, Gold Prices

By Justin YangFeaturesDow Jones Newswires

Metals, including gold and copper, rose on Friday as the dollar fell amid expectations of a slower path to further U.S. interest rate rises.

Federal Reserve Chairwoman Janet Yellen said on Thursday said that a recent downturn in inflation would prove transitory, curbing some expectations that the Fed will be quick to raise rates. Investors sold the dollar, making greenback-denominated metals more affordable for holders of foreign currencies.

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Copper rose 0.26% to $5,880 a metric ton in Friday mid-morning trading. Gold was up 0.10% to $1,218.50 a troy ounce

The WSJ dollar index, which measures the dollar against a basket of currencies, fell0.09% to 87.83.

Expectations for lower interest rates tend to boost gold, also, because higher rates make yield bearing securities more competitive.

"It's a macro thing, the sentiment is optimistic after Yellen's testimony. The dollar is down today and that's giving the base metals complex a bit of a lift," said Kash Kamal, senior research analyst at Sucden Financial.

Investors are now awaiting numbers later Friday on U.S. industrial production, retail sales and the consumer price index, data that will give investors further insight on when rates are next likely to go up.

"This is important, everyone's trying to get an idea of what the interest rate will be from the fed," said Eugen Weinberg, head of commodity research at Commerzbank.

For copper, investors are also monitoring a labor dispute at Antofagasta PLC and Barrick Gold Corp.'s Zaldívar mine, where workers have agreed to extend wage negotiations, said analysts at ING Bank. Supply disruptions from labor disputes have helped push this metal higher.

Among precious metals, palladium was up 0.61% to $859.95 a troy ounce, platinum rose 0.20% to $908.90 a troy ounce and silver fell 0.17% to $15.67.

Among base metals, zinc dropped 1.38% to $2,760 a metric ton, aluminum was flat at $1,923.50 a metric ton, tin fell 0.38% to $19,825 a metric ton, nickel rose 2.01% to $9,375a metric ton, lead fell 0.81% to $2,273 a metric ton.

(END) Dow Jones Newswires

July 14, 2017 07:04 ET (11:04 GMT)