Money and Metals

Bloomberg reports on currencies. "The dollar traded near a record low against the euro, posting the biggest monthly loss since November, as U.S. reports showing moderating inflation and slowing growth increased bets the Federal Reserve will reduce interest rates. The U.S. currency erased its earlier advance as the speculation on borrowing costs dimmed the allure of dollar- denominated assets."

"'You are continuing to see a flow of data from the U.S. on the weak side,'' said Greg Salvaggio, vice president of capital markets in Washington at currency trader Tempus Consulting Inc. 'Money is going to flow to the euro zone and away from the U.S. The trend of a falling dollar and a rising euro is intact.'"

"The dollar traded at $1.3648 per euro at 4:19 p.m. in New York compared with $1.3652 yesterday. It earlier touched $1.3679, near the record low of $1.3681 set April 27. The dollar dropped 2.19 percent against the euro in April for its biggest drop since falling 4.06 percent in November."

"The U.S. currency rose as high as $1.3590 in Asian and European trading as some investors sold the euro to book profits and as a government report showed German retail sales unexpectedly fell last month."

"The yen lost this month against all 16 major currencies as investors added to their holdings in higher-yielding assets financed by borrowings in Japan, a practice known as the carry trade. Japan has the lowest interest rates among major economies."

"The Japanese currency dropped 3.56 percent against the euro, for its biggest monthly decline since a 4.02 percent loss in November 2003. The yen gained 0.18 percent today to 162.98 versus the euro as investors exited some of their carry trades."

"The dollar dropped against 13 out of 16 major currencies this month, falling 2.2 percent against the euro, 1.6 percent versus the British pound and 4 percent against the Canadian currency. The Swedish krona was the biggest winner against the dollar this month, rising 4.3 percent, while the yen was the biggest loser, declining 1.4 percent."

"'The trend is clearly toward a weak dollar,' said Dennis Gartman, economist and editor of The Gartman Letter in Suffolk, Va. 'The only concern is that there are an awful lot of dollar bears around.'"

From MarketWatch. "Copper futures were a standout among the metals Monday, as news of a strike among Peru's labor unions helped raised concerns about production, prompting prices to tally a gain of more than 13% for the month. Helped by copper's strength, as well as weakness in the U.S. dollar, gold for June delivery closed up $1.70 at $683.50 an ounce. It posed a climb of 2.2% for the month of April. "

"Gold rose Monday mainly because prices held support at $675 '"and funds and a few previously cashed-out sellers were back buying the dips,' analyst Jon Nadler said. Gold is forming a base near here and was 'poised to move higher if conditions (economic data) permit later in the week and next month,' he said."

"For now, gold is "looking interesting,' said James Moore, an analyst at TheBullionDesk.com, and if the dollar continues lower, and particularly if it sets a fresh low again vs. the euro, 'then we might have a little pop up towards [the] $690-to-$692 resistance band' in spot gold prices.
'If not, I think it could mean further consolidation around $670 to $680,' he said."

"Other metals prices gained Monday, with the exception of June palladium, which gave back 45 cents to end at $374 an ounce. It was up 4.7% for the month. July silver closed at $13.575 an ounce, unchanged for the session and nearly flat for the month as well. July platinum rose $5.40 to close at $1,298.40 an ounce, up 3.5% for the month."