Yahoo Finance Metal Prices See Red as Strong Dollar, China Slowdown Fears Limit Demand
Investing.com - Metal prices remained under pressure Tuesday as gold hovered just above $1,200, while copper fell sharply after the dollar printed fresh intraday highs for the year.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange rose by $2.30, or 0.19%, to $1,200.70 a troy ounce.
Gold prices traded in a narrow range as traders appeared reluctant to snap up the metal at 18-month lows, fearing the dollar may have more room for gains after rising near 18-month highs.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.44% to 96.58.
"We see 98 as the dollar index's next likely stopping point," Oppenheimer said in a note to clients Monday.
Gold is sensitive to moves higher in the U.S. dollar. A stronger dollar makes gold more expensive for holders of foreign currency, reducing investor demand for the precious metal.
As well as the dollar rally, a slew of negative data from China, the world's largest commodity consumer, pressured the wider metals market, as worries mounted over a slowdown in the country's economy, which would likely hurt demand for commodities.
Copper prices fell 1.79% to $2.68, while zinc prices fell 1.08% at 2,451.25.
The rout in copper prices were exacerbated by fears a strike at the world’s largest copper mine, Escondida in Chile, could be on the cards despite a union at the mine agreeing to another day of talks, calling off a strike planned to start on Tuesday.
Aluminium prices fell 0.33% to 2,069.25, while nickel futures fell 2.08% to 13,525.00.
Silver futures rose 0.45% to $15.05 a troy ounce, while platinum futures rose 0.15% to $800.70.
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