KR: Gold, copper fall sharply as dollar rises vs. euro
NEW YORK (AP) -
Gold and copper prices tumbled sharply Tuesday after the dollar gained ground against the euro, knocking a key peg of support from under precious metals and other commodities.
The dollar rose to its highest level since March 2007 against the European currency as investors seeking safe, liquid assets flocked to the greenback. A stronger dollar typically prompts investors to shed commodities bought as a hedge against inflation or weakness in the U.S. currency.
Gold for December delivery lost $22 to settle at $768 an ounce on the New York Mercantile Exchange, after earlier falling as low as $766.40.
"Gold still appears pointed toward the mid-$700's if not lower, at this time," said Jon Nadler, analyst with Kitco Bullion Dealers Montreal, adding that the metal has come under heavy selling pressure from investment funds trying to raise cash.
Other precious metals traded mixed. December silver jumped 38.5 cents to settle at $10.075 an ounce on the Nymex, while December copper rose 10.95 cents to settle at $2.007 a pound after earlier hitting a nearly three-year low of $1.992.
In energy markets, oil prices dropped back below $71 a barrel as the bearish impact of the rising dollar outweighed worries about an expected OPEC production cut.
Light, sweet crude for November delivery fell $3.36 to settle at $70.89 on the Nymex. On Monday, the contract rose $2.40 to settle at $74.25 a barrel after members of the Organization of the Petroleum Exporting Countries said the group was planning to trim output.
Crude oil is down 52 percent from its all-time peak of $147.27 reached July 11.
In other Nymex trading, heating oil futures fell 3.24 cents to settle at $2.1975 a gallon, while gasoline prices lost 2.82 cents to settle at $1.6919 a gallon.
Meanwhile, agriculture futures fell on the Chicago Board of Trade.
Corn for December delivery lost 7.5 cents to settle at $4.11 a bushel, while soybeans for November delivery fell 25.5 cents to settle at $9.1525 a bushel.
December wheat lost 14.5 cents to settle at $5.49 a bushel.
