NEW YORK — Precious metals moved slightly higher Friday, supported by more weakness in the dollar. Other commodities like base metals and oil declined as investors refrained from making big bets on economically sensitive materials following a report suggesting consumer demand is still soft. Trading was generally quiet Friday amid light volume, which can exaggerate moves in the market. The mixed bag of news for commodities has become a familiar pattern in recent weeks as investors weigh the impact of a weak dollar against lingering concerns about the economy's health. Commodity prices have soared since March on the belief that an improving economy and a falling dollar would lead to an increase in demand, but traders have curbed their buying since early June as new economic data suggests the economy is still troubled. Investors were jarred by a huge jump in the personal savings rate Friday, which indicated that consumers are not spending as much as they used to. The Commerce Department reported that the savings rate soared in May to 6.9 percent, a 15-year high, while spending rose by a more modest 0.3 percent. "People seem to be a bit more anxious about the economy than they were even two weeks ago," said Matt Zeman, head trader at LaSalle Futures in Chicago. The dollar continued to fall against other currencies, which is a plus for commodities prices. Commodities are priced in dollars, so a weaker greenback makes them less expensive for foreign buyers. The dollar lost more ground against the euro and the British pound Friday, and September silver gained 12.4 cents to $14.1560 an ounce on the New York Mercantile Exchange. However silver ended the week down for the fourth straight week, slipping 0.3 percent over the five-day period. Elsewhere on the Nymex, gold for August delivery added $1.50 to $941 an ounce, while July platinum rose $12 to $1,203 an ounce. Gold, which investors use as a hedge against inflation, ended the week up 0.5 percent after three straight weeks of declines. Among base metals, September copper futures fell less than 1 penny to $2.3090 a pound, but ended the week up 2.1 percent. Aluminum prices dipped 2 percent on Friday. Energy prices fell on the Nymex, pressured by the losses in the stock market and ongoing concerns about the health of the economy. Investors have been sending energy futures, especially oil, higher in recent months as a hedge against inflation. But analysts warn that the gains in prices have been built more on speculative buying than on expectations for future demand. Light, sweet crude for August delivery fell $1.07 to $69.16 a barrel. In other Nymex trading, gasoline for July delivery fell 2.42 cents to $1.8742 a gallon and heating oil lost 4.6 cents to $1.7303 a gallon. Natural gas for July delivery rose 11.6 cents to settle at $4.105 per 1,000 cubic feet. Grain prices rose slightly on the Chicago Board of Trade. September wheat futures rose 1.5 cents to $5.63 a bushel, while corn for September delivery added 1.75 cents to $3.9175 a bushel. August soybeans inched up 1 penny to $11.28 a bushel.

Source