Metal Investments

Commodities vs Dollar?

02. May 2008

Friday, 10:20am GMT


  • Yesterday was downhill for commodities as they fell across the board due to stronger dollar which eroded demand for energy, metals, crops and livestock as alternative investments.

  • Oil also fell slipping below $112 a barrel today pressured by a firm dollar. Supply worries in major crude exporter Nigeria are easing and concerns that demand in United States will slow. U.S. light crude for June delivery fell to $111.95 a barrel by 05:28 GMT.

  • LME base metals are mixed this morning with Copper prices edged little higher in early London trade after fell of four percent during yesterday's broad based commodity sell-off sparked by the dollar's strength. Copper is taking support from strikes in key producer Chile and dwindling LME inventories. LME Copper stocks are down by 450 tons to 109,625 tons.

  • Aluminium is at $2865 with LME stocks down by 1450 tons to 1,037,500 tons.

  • Gold is at $854.00. Gold was steady this morning after fall of 17 percent since hitting a record $1,032.50 last month on dollar strength, easing inflation fears, receding worries over a recession and rising risk appetite, which have reduced gold's appeal as an alternative asset for investors.

  • The FTSE 100 index is up 61 points to 6149. The index of 103 stocks traded on the London Stock Exchange rose this morning with the stocks in the index, 92 rose, 6 fell and 4 were unchanged. Gains were led by Rio Tinto, Vodafone and Royal Bank Of Scotland.

    LME Metals 3 Month Prices, 10:30am GMT

    Bid Offer Change *
    Copper $8240 $8245 + $70
    Aluminium $2869 $2870 + $30
    Lead $2545 $2555 + $5
    Zinc $2195 $22202 + $24
    Nickel $28425 $28445 + $40
    Tin $22700 $22800 - $50

    * Change from previous day's close