By David Hodari 

LONDON--Industrial metals prices fell Friday, putting them on course to close out the week in negative territory as broader markets dropped after data showed the Chinese economy continued to slow.

The price of copper was down 1% at $6,090.50 a metric ton in midmorning trade.

Gold was also down, by 0.2% at $1,239.65 a troy ounce, as the U.S. dollar strengthened on haven buying. Weakness in both the Chinese yuan and the euro--after the European Central Bank signaled deepening concern over eurozone economic growth--was benefiting the greenback.

The WSJ Dollar Index, which measures the U.S. dollar against a basket of 16 other currencies, was last up 0.4%, extending its five-day gains to 0.7%. Dollar-denominated commodities become more expensive for holders of other currencies when the dollar strengthens.

The currency moves came as a slew of economic data added weight to investors' fears of a global economic slowdown.

Data released Friday showed a larger-than-expected deepening in China's economic downturn last month. Slipping retail sales and industrial production figures piled further pressure on Beijing to halt a slowdown in 2019 while dealing with its continuing trade conflict with the U.S.

"Without the front loading of exports, this was seen as a better illustration of the poor state of the Chinese economy," said Alastair Munro, a broker at Marex Spectron in a note.

China accounts for about half of global metals demand, and concerns around trade tensions and a weakening economy have weighed on metals prices through the second half of 2018. London copper futures have lost 15% of their value in the past six months.

Elsewhere in the copper market, a strike blockade at Chilean state-owned Codelco's mine at Chuquicamata was broken up by police Thursday, with some unions officials being arrested.

That didn't end production disruption at Chile's third largest copper mine, however, with the mine's smelter being one of two Chilean operations shuttered after failing environmental standards.

Investors were awaiting data out of the eurozone next week, as well as next week's Federal Reserve meeting, at which the central bank is expected to announce an increase in interest rates.

Among precious metals, silver was down 0.68% at $14.65 a troy ounce, palladium was down 0.75% at $1,249.50 a troy ounce and platinum was down 0.23% at $794.50 a troy ounce.

Among base metals, aluminum was down 0.26% at $1,925 a metric ton, zinc was down 1.83% at $2,528 a metric ton, tin was down 0.1% at $19,435 a metric ton, nickel was down 0.18% at $10,830 a metric ton and lead was up 0.23% at $1,951.50 a metric ton.

Write to David Hodari at David.Hodari@wsj.com

 

(END) Dow Jones Newswires

December 14, 2018 06:37 ET (11:37 GMT)

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