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Precious metals slightly higher as dollar falls

Precious metals moved slightly higher on Friday, supported by more weakness in the US dollar.

Other commodities like base metals and oil declined as investors refrained from making big bets on economically sensitive materials following a report suggesting consumer demand is still soft.

Trading was generally quiet on Friday amid light volume, which can exaggerate moves in the market. The mixed bag of news for commodities has become a familiar pattern in recent weeks as investors weigh the impact of a weak US dollar against lingering concerns about the economy’s health.

“People seem to be a bit more anxious about the economy than they were even two weeks ago,” said Matt Zeman, head trader at LaSalle Futures in Chicago.

OIL: Oil prices fell on Friday as traders booked profits from a strong rally and fretted about lackluster US consumer spending and new unrest in oil-producing Nigeria.

New York’s main futures contract, light sweet crude for delivery in August, tumbled US$1.07 a barrel from Thursday to close at US$69.16. It had risen US$1.56 on Thursday.

In London, Brent North Sea crude for August dipped US$0.86 to US$68.92.

“There are a lot of concerns about the spending data,” said Ellis Eckland, an independent trader.

“We are in the driving season and the [gasoline] demand remains weak,” he added.

The Commerce Department reported US consumer spending rose a tepid 0.3 percent last month from April, mainly as a result of a massive government stimulus launched by US President Barack Obama.

Traders focused on the weakness in US gasoline demand in the run-up to the July 4 Independence Day holiday.

METALS: September silver gained US$0.124 to US$14.1560 an ounce on the New York Mercantile Exchange. However, silver ended the week down for the fourth straight week, slipping 0.3 percent over the five-day period.

Gold for August delivery added US$1.50 to US$941 an ounce on the NYMEX, while July platinum rose US$12 to US$1,203 an ounce.

Gold, which investors use as a hedge against inflation, ended the week up 0.5 percent after three straight weeks of declines.

Among base metals, September copper futures fell less than 1 penny to US$2.3090 a pound, but ended the week up 2.1 percent.

Aluminum prices dipped 2 percent on Friday.

GRAINS AND SOYA: Grain prices rose slightly on the Chicago Board of Trade. September wheat futures rose US$0.015 to US$5.63 a bushel, while corn for September delivery added US$0.0175 to US$3.9175 a bushel.

August soybeans inched up US$0.01 to US$11.28 a bushel.
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