Materials Rally as the Dollar Weakens -- Materials Roundup

Producers of metals and other raw materials rallied as the U.S. dollar declined in the aftermath of surprisingly muted inflation data.

The consumer-price inflation index rose 3% on an annual basis, nearing the Federal Reserve's comfort zone of around 2%. "The mix of inflation and labor market data for June has shown greater progress than we expected toward levels that would likely allow an initial rate cut," said Andy Schneider, senior U.S. Economist at brokerage BNP Paribas, moving up a projection for the first rate cut to September from December.

Gold futures, which are particularly sensitive to shifts in the dollar and rate expectations, tested all-time highs above $2400 an ounce.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

07-11-24 1756ET