Copper prices rose on Tuesday, with a drop in the U.S. dollar allowing the industrial metal to recover from heavy selling last week. Contracts for September rose 0.9% to $2.6915 a pound at the Comex division of the New York Mercantile Exchange, on track for the highest close in more than a week.
Analysts pointed to the weakness in the dollar, which fell after President Trump criticized the Federal Reserve for raising interest rates. The WSJ Dollar Index, which measures the greenback against a basket of 16 others, fell 0.1%.
Prices for gold, aluminum and various other metals were also mostly higher. Gold prices for August climbed 0.3% to $1,190.50 a troy ounce, with the more-active October contract rising 0.1%.
“We’re on an up day today across base and precious metals, with those baskets inversely correlated to the dollar,” said William Adams, head of research at FastMarkets.com. “Base investors are bargain-hunting.”
A weaker dollar tends to make commodities denominated in the currency less expensive for other currency holders. The dollar has risen steadily in recent months, gaining 4% for the year, partly as traders responded to the Fed’s plan to continue raising rates.
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