Commodity prices have enjoyed a boost as the dollar continues its downward slide.
“The dollar is rolling again, and commodities are higher across the board. As long as money printing continues, people are going to want to have physical assets in their hands,” noted Matt Zeman, metals trader at LaSalle Futures Group.
After Federal Reserve Chairman Ben Bernanke indicated the U.S. central bank may purchase more debt, the dollar has dropped as much as 1% against a basket of six global currencies.
On the other hand, commodities – cotton and tin in particular – have been on a run. Copper rose to its highest trading levels in over two years, gaining 30$ since July 1. Copper stockpiles have dropped to their lowest levels in the past year due to global shortages.
Of all the metals traded on the London Metal Exchange, tin has experienced the highest jump, climbing 53% this year. Recently tin broke its previous trading record to reach $25,925 a ton for three-month delivery. The previous record of $25,500 was set in May of 2008.
Lead, zinc, nickel and aluminum prices have also risen on the LME. Read more..