Metals Prices Rise as Dollar Slumps to Multi-Month Lows

Copper added to gains on Thursday.Copper added to gains on Thursday.

Investing.com – Metals prices were mostly higher Thursday on a weaker greenback and expectations the United States and China will eventually resolve their monthslong trade dispute.

gained 0.53% to $2.74, rose 1.64% to 2,460.50 and rose 1.50% to 12,680.00.

A less-harsh-than-expected volley of tariffs exchanged by the United States and China earlier this week suggested both nations are in no rush to ramp up their trade dispute, stoking investor optimism that a resolution will be sought to end their trade spat.

That eased investor fears that China, the biggest importer of metals, would rein in purchases of metals, while improving sentiment in developing economies has also shored up metals, adding to the recovery.

“We think US growth will remain above trend and economic fundamentals in most (emerging market) EM countries remain healthy, creating fertile ground for a comeback in EM assets,” Goldman Sachs said Wednesday.

The wider metals market was also boosted a plunge in the dollar to a near four-month low, but gold prices were capped ahead of a widely-expected Federal Reserve rate hike next week.

The , which measures the green against a trade-weighted basket of six major currencies, fell by 0.59% to 93.56.

Dollar-denominated assets such as gold are sensitive to moves in the dollar. A fall in the dollar makes gold cheaper for holders of foreign currency, increasing demand for the precious metal.

for December delivery on the Comex division of the New York Mercantile Exchange rose by $1.90, or 0.16%, to $1,210.20 a troy ounce.

rose 0.07% to $14.29 a troy ounce, while rose 1.35% to $833.00.

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Source: Investing.com