Metals slump after dollar rallies on ECB comments

AP News
Posted: Feb 07, 2013 3:43 PM

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.