NEW YORK (AP) - Gold ended higher Wednesday but prices pulled back sharply off of the day's early gains as investors were overcome by a strengthening dollar and more bleak economic data.
Other precious metals prices fell. Agriculture and energy futures also declined.
Gold and other commodities got a slight boost early in the day from a weakening dollar, but futures turned lower as the dollar strengthened later in the day.
"It was a hopeful sign," said Mark Hansen, director of trading at CPM Group in New York, of the dollar's brief decline, "but it just didn't pan out."
Investors often use commodities as a hedge against a weak greenback.
Commodities were also shaken by another rocky day on Wall Street, which saw the Dow Jones industrials plunge nearly 430 points, hitting levels not seen since 2003. Commodities moving in tandem with the stock market has become a recurring theme as investors remain fearful of a deep and protracted economic downturn. And there was plenty of bleak economic data on Wednesday to further discourage investors.
The Federal Reserve sharply lowered projections for economic activity this year and next. Meanwhile, dour reports on consumer prices and new-home construction provided more evidence of an economy in flux.
Investors are also worried about the fate of the nation's top automakers, which are pleading for government support as they teeter on the brink of bankruptcy.
"We're looking for the stabilization of the equities markets before we even start thinking about commodities moving (forward)," Hansen said.
After rising as much as $32.10 to $764.80, gold for December delivery retreated, rising just $3.30 to settle at $736 an ounce on the New York Mercantile Exchange.
December silver lost 24 cents to $9.31 an ounce, while March copper futures fell 6.2 cents to $1.6095 a pound.
Oil slipped below $54 a barrel Wednesday after a report from the Labor Department showed that energy prices fell by a record 8.6 percent in October, led by a 14.2 percent drop in gasoline prices, also a record. With no definitive signs that the economy is stabilizing, industry analysts expect energy prices will continue to fall.
Light, sweet crude for December delivery fell 77 cents to settle at $53.62 a barrel, about where prices were in January of 2007.
In other Nymex trading, gasoline futures slipped about 3 cents to settle at $1.107 a gallon. Heating oil futures rose less than a penny to settle at $1.7597 a gallon.
Grain prices dipped on the Chicago Board of Trade.
March wheat futures slipped 3 cents to $5.465 a bushel, while corn for March delivery shed 1.25 cents to $3.9525 a bushel.
