Metal Investments

Stronger Dollar upsetting commodity prices!

01. Sept. 2008

Monday, 12:00pm GMT


  • Copper prices fell to $7305 per tonne, the lowest price since 19. Aug. because of the strong dollar and rising LME stocks. Nickel also fell 3.2 percent to a two-week low of $19600. The dollar was at the eight-month high against most of the currencies. Zinc traded weak despite the downside pressure from a strong dollar was offset by worries that Hurricane Gustav could threaten London Metal Exchange warehouses in New Orleans.

  • Crude oil price was down reversing earlier gains after a forecast that hurricane Gustav is not going to accelerate in the Gulf of Mexico before striking land.

  • Chinese aluminium maker Chinalco said on Monday it may increase its minority stake in Rio Tinto if market conditions are good.

  • Gold gained as hurricane Gustav's approach towards the U.S. Gulf Coast increasing the metal's appeal as an inflation hedge at $ 833.10.

  • FTSE 100 dropped to 5603 falling back from the two months high seen last week. Oil major Royal Dutch Shell received a boost from the higher cost of crude oil slightly offseting droppers British Airways and cruise giant Carnival down 5.75p at 245.25p and 37p at 1845p respectively.