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Metal Market Suffers from Stronger Dollar

May 19, 2015 at 21:02 by Vladimir Vyun

Not only the energy market suffered from the strength of the US dollar today, but the metal market as well. The currency surged on the back of positive housing data that alleviated concerns caused by the last week’s string of soft economic indicators. Metals usually trade inversely to the greenback, making it no surprise that the dollar’s rally has triggered a sell-off on the metal market. Previously, metal were rising with the help of the dollar’s decline.

The quantitative easing program initiated by the European Central Bank is also considered to be bearish for metals. Today’s report about a decline of the German business sentiment did not make the situation better for the commodities.

Futures for delivery of gold in June lost 1.61 percent of their value, trading at $1,207.80 per troy ounce as of 20:57 GMT on COMEX today. July silver slumped as much as 3.48 percent to $17.12 per ounce. Futures for copper declined 2.53 percent to $2.8330 per pound.

If you have any questions and comments on the commodities today, use the form below to reply.

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