Industrial metals benefited from the weakening US dollar

The global financial markets have been calm, which allowed most commodities to close the session with gains. The weakened dollar index approved an increase in the price of raw materials. Notably, the weakening of the US dollar increases the demand for commodities.

It makes them more accessible to investors who hold another currency.

Economic activity is record low

However, caution still exists among market participants. The United States published the initial applications for unemployment support. Last week, the number of unemployed citizens increased by 4.4 million.

For its part, in Europe, the Composite Index of Total Activity plummeted to 13.5. It is the lowest number on record since 1998. Meanwhile, the Services Sector Index stood at 11.7, also being a record low. Likewise, the Production Index of the Manufacturing Sector registered 18.4, the lowest record since 1997. 

Lastly, the PMI of the Manufacturing Sector stood at 33.6, the lowest in the last 134 months.

Closure of mines is a threat to metals’ supply

The weakening of the dollar and the expectation of higher economic stimuli led the price of gold to increase. The precious metal closed the session trading at $1,731.72 per ounce, which is equivalent to an increase in its rate of 1.03 %. 

Like the price of gold, some of the industrial metals benefited from the general weakening of the US dollar, leading them to close with gains. Besides, there is an expectation that due to the closure of mines, copper and nickel supplies may reduce. 

The copper closed the session trading at USD 5135.5 per metric ton, equivalent to an increase in the price of 0.51%. Meanwhile, the cost of Nickel rose by 1.28% and closed the session trading at $12,169 per metric ton.

Conversely, zinc and aluminum closed the session with losses as there is nervousness about their demand. Aluminum inventories on the London Metal Exchange (LME) increased 0.74% to 1.31 million metric tons, while zinc inventories increased 2.54% to 100,075 metric tons. Given this, aluminum closed the session trading at $1,475.5 per metric ton. It is equivalent to a reduction in its price of 0.05%. Meanwhile, zinc closed the session with a loss of 1.21%. The metal traded at $1,872.5 per metric ton.

Agricultural products ended the session with little change, although with gains, mainly due to the weakening of the US dollar.

Corn traded at $ 3.26 per bushel, which is equivalent to an increase in its price of 0.38%. Soybeans increased by 0.50% and closed trading at $ 8.46 per bushel. For its part, wheat traded at $5.44 per bushel, with a gain of 0.18%.