Metals lead gains for commodities as dollar slumps

Print
Email
|

Associated Press

Posted on November 23, 2012 at 12:00 PM

Updated Friday, Nov 23 at 12:02 PM

NEW YORK (AP) — Precious metals are rising, with gains being driven by a decline in the dollar. Silver and gold are both trading at their highest in more than a month.

Palladium led the gains, rising $16.30, or 2.5 percent, to $667.60 an ounce.

Most commodities are priced in dollars, meaning that when the value of the currency falls, producers demand more dollars in exchange for their commodities.

The price of coffee was the only commodity to fall as traders bet that favorable weather in Brazil will produce a good crop.

Wheat, corn and soybeans all advanced.

Trading volumes were lower Friday and the markets closed earlier than usual with many traders still on vacation after yesterday's Thanksgiving holiday.

Print
Email
|