Oil, copper, gold, zinc: Commodities rally as dollar softens after US jobs shocker

Jessica Morris
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It's been bad news for the dollar recently, but at least there is a silver lining (Source: Getty)

The dollar's pain was commodities' gain this morning, as the weaker greenback reinvigorated the typically ailing asset class.

It helped oil push through the $50 mark, while copper, gold and zinc hit multi-week highs.

Most metals had a torrid time last month due to the stronger greenback. But it traded near three-week lows today, making dollar-traded commodities cheaper and potentially pushing up demand.

Read more: Commodities hedge funds shrug off money manager woes

The dollar plummeted on Friday after a dismal US jobs report pushed back expectations for rate rise in the world's largest economy. It showed US employers added just 38,000 jobs last month, below economists' expectations for 160,000.

US Federal Reserve chair, Janet Yellen, will be delivering a speech later today – her last before the FOMC meeting on 14-15 – and traders, analysts and commentators will no doubt be looking for clues about the Fed's thinking on the US economy and interest rates.

Brent crude, the global benchmark, swelled 1.3 per cent to $50.3 per barrel this morning. Meanwhile, West Texas Intermediate, the US benchmark, skipped up 1.2 per cent to $49.2.

Spot gold touched a two-week high near $1,250 an ounce, before trimming gains to trade 0.3 per cent lower at $1,241.

Read more: Chinese steel and iron ore futures post worst monthly performance on record

Three-month copper on the London Metal Exchange climbed to its highest in four weeks, touching $4,748 which was the strongest since 12 May, before falling back slightly to 4,688.

Chinese iron ore jumped 5.6 per cent to end at 367 yuan (£38.8) a tonne, earlier touching the highest since 23 May. Rebar steel swelled four per cent to 2,059 yuan (£217.9), after touching a near three-week peak of 2,082 yuan.

The upswing in iron ore and steel helped send nickel and zinc higher, with the latter hitting a 10-month top at $2,029.5.