Gold and most other commodities tumbled yesterday, reflecting steep losses on Wall St and a strengthening US dollar.
Gold for December delivery fell US$10.20 to US$732.20 an ounce on the New York Mercantile Exchange.
December silver tumbled US40c to US$10.055 an ounce and December copper futures shed US9.35c to US$1.7255 a pound.
Commodities are often used as a hedge against inflation, so when the dollar strengthens, as it has after a series of interest rate cuts by central banks, investors tend to flee them.
Light, sweet crude for December delivery fell 7 per cent, or US$4.53, to US$60.77 a barrel. Oil prices are down nearly 60 per cent since mid-July.
Grain prices mostly fell on the Chicago Board of Trade. December wheat futures fell US14.75c to $US5.225 a bushel, and corn for December delivery fell US12.25c to US$3.78 a bushel.
