Metals Slump After Dollar Rallies on ECB Comments

The price of palladium for March delivery slumped $14.35, or 1.9 percent, to $750.45 an ounce, its biggest decline in a month.

Associated Press
Associated Press
Feb 7, 2013 at 3:50PM
Markets

Palladium is leading declines for metals, after the head of the European Central Bank expressed concern over the rise in the euro. That prompted the dollar to rally.

The price of palladium for March delivery slumped $14.35, or 1.9 percent, to $750.45 an ounce, its biggest decline in a month. Gold, silver, copper, and platinum also fell.

Commodities are typically traded in dollars, so when the currency strengthens, traders demand fewer dollars. That pushes down commodity prices. The dollar index, a broad measure of the strength of the U.S. currency, rose 0.6 percent Thursday, its biggest advance in a month.

In grains trading, wheat and corn edged lower. Soybeans finished fractionally higher.