NEW YORK (AP) -- Gold and other precious metals prices rose Monday as bargain-hunting investors trickled back into the beaten-down commodities market. Grain prices also rose, while energy futures fell.
Precious metals and other commodities were hit hard in October by a strengthening U.S. dollar. Investors tend to buy commodities as a hedge against inflation when the dollar is weak and sell those investments when the greenback rises.
Gold for December delivery rose $8.60 to $726.80 an ounce on the New York Mercantile Exchange, after rising as high as $739.50 earlier in the session. December silver rose 2 cents to $9.750 an ounce, while copper for December delivery rose 1.1 cents to $1.84 a pound.
Analysts said investors likely were taking advantage of some of the buying opportunities created by the steep declines in metals prices last month.
Gold prices dropped 18 percent in October, while silver prices lost 21 percent and copper fell about 37 percent.
"The reason why we've seen some strength in precious metals is they've been so weak," said Rob Kurzatkowski, a futures analyst with OptionsXpress.
Still, analysts said Monday's gains might be short-lived. George Gero, vice president at RBC Capital Markets Global Futures in New York, said investors are likely waiting to see how the dollar performs in the next couple weeks.
The dollar mostly rose against other major currencies Monday.
Energy prices declined on the Nymex, as a spate of dour economic reports pushed oil and gasoline prices down even further. The Institute for Supply Management reported that its measure of U.S. manufacturing activity fell last month to its lowest level in more than a quarter century amid tightened credit conditions and disruptions from Hurricane Ike.
Light, sweet crude for December delivery fell $3.90 to settle at $63.91 a barrel. Gasoline futures slipped more than 13 cents to settle at $1.36 a gallon, while heating oil futures fell 10.14 cents to settle at $1.9828 a gallon.
On Wall Street, stocks traded mixed during quiet trading ahead of the election. The Dow Jones industrial average fell 5 points. The yield on the benchmark 10-year Treasury note fell to 3.91 percent from 3.96 percent late Friday.
Grain prices posted modest gains on the Chicago Board of Trade.
December wheat futures rose 25.75 cents to settle at $5.62 a bushel, while corn for December delivery rose 1.50 cents to settle at $4.03 a bushel.
January soybeans rose 4.5 cents to $9.375 a bushel, after rising as high as $9.55 earlier in the session.
"Grains have been rebounding from being so oversold," said Kurzatkowski. "I think you're seeing a lot of value buying."
