Metals hurt by dollar as currency tumult roils commodities
BNN Bloomberg
Industrial metals dropped, while gold fluctuated after earlier tumbling on the back of a rallying dollar and concerns over a global recession.
The greenback extended gains to a record in a tumultuous start to the week that also saw the pound hit a record low and China’s currency neared its weakest since 2008. Investors are turning to dollar as a haven as monetary tightening clouds growth prospects, putting pressure on commodities that are priced in it.
“Recessionary concerns are gripping the market, with the fact that the US dollar is scaling higher and likely to continue to rise,” said Jessica Amir, a strategist at Saxo Capital Markets in Sydney.
Most base metals traded lower, with copper dropping as much as 1.9 per cent before paring some of the loss and nickel slipping 4.5 per cent. Bullion steadied, after earlier touching the lowest in more than two years.
