Copper On the Rise as Dollar Slides

NEW YORK -- Copper rose for a sixth session Tuesday as a weakening dollar sent investors in search of other assets seen as stable stores of value.

The dollar continued its slide against the euro as economic data suggests that a debt crisis may not be hurting European countries as much as previously thought. Industrial production in the 16 countries that use the euro grew more than forecast in April, easing concerns that mounting deficits could severely hamper economic output.

Strong industrial production around the world also boosts expectations for demand for copper, which is used in manufacturing.

Copper for July delivery rose 1.25 cents, or 0.42 percent, to settle at $3.0045 a pound. It was the first time copper ended above $3 since June 2.

"Fundamentally, we're still seeing physical demand for copper remain strong," said Catherine Virga, base metals analyst with CPM Group in New York.

The euro rose back above $1.23 for the first time since May 31, rising to $1.2337 in afternoon trading. The currency has been considered a strong indicator of confidence in Europe's economy and has often driven stocks and other risky assets like commodities lower in recent weeks.

The euro had been falling steadily since late April, pushing the dollar higher and commodities lower. Commodities are priced in dollars, so a stronger dollar makes them more expensive for foreign investors.

Other industrial metals also rose. Platinum for July delivery rose $14.60 to settle at $1,578 an ounce, while palladium for September delivery rose $12.95 to $475.55 an ounce.

In energy markets, benchmark crude for July delivery rose $1.82 to settle at $76.94 a barrel on the New York Mercantile Exchange.

In other Nymex trading in July contracts, heating oil rose 4.26 cents to settle at $2.0685 a gallon, and gasoline gained 4.51 cents to close at $2.1035 a gallon. Natural gas prices rose 18.3 cents to settle at $5.189 per 1,000 cubic feet.

Wheat for September delivery remained unchanged at $4.675 a bushel, while corn for July delivery remained unchanged $3.5375 a bushel. July soybeans fell 2 cents to $9.495 a bushel.

Gold rose as investors sought hedges against inflation. August gold rose $9.90 to settle at $1,234.40 an ounce.