Metal, energy prices lead broad commodities rally as dollar retreats throughout the day
By Stephen Bernard, APFriday, February 19, 2010
Metals, energy lead commodities higher
NEW YORK — Metal and energy prices are leading a broad rally in commodities after the dollar retreated.
“The commodity trade today was all about the dollar,” said Michael Sheldon, chief market strategist at RDM Financial Group.
Even though the dollar remained higher in late-day trading, it retreated sharply throughout the day. As the dollar falls, commodity prices rise.
A weaker dollar makes commodities more attractive, especially for foreign investors, because they are priced in the U.S. currency.
Metals all rose, with copper again among the biggest gainers. Copper for May delivery is up 7.35 cents at $3.379 a pound. Copper has surged 18.3 percent in the past two weeks because investors expect demand to remain high as the global economy recovers.
