Gold and other metals prices sank Thursday as investors worried that Japan's central bank might soon take action to weaken the yen. That could strengthen the value of the dollar and make gold a less attractive hedge against inflation.
Gold for December delivery fell $12.70 to settle at $1,335 an ounce Wednesday, falling from the record high of $1,347.70 it hit Wednesday. Silver prices also fell, with December silver losing 45.9 cents to settle at $22.584 an ounce.
Investors are worried Japan's central bank could act as soon as this weekend to intervene in currency markets, said George Gero, vice president of global futures at RBC Capital Markets.
Other metals also fell. Copper lost 7.35 cents to $3.6795 a pound. October palladium lost $2.55 to settle at $587.10 an ounce and platinum lost $7 to settle at $1,700 a pound.
Grain and bean prices rallied, a day before a U.S. Department of Agriculture report will give the latest estimate on the U.S. corn crop. Corn prices rose 9.75 cents to $4.9825 a bushel. Soybeans for November delivery rose 3 cents to $10.65 a bushel. Wheat for December delivery rose 1 cent to $6.5925 a bushel.
Oil prices fell as a new government report showed supplies were higher than last year. Benchmark crude for November delivery fell $1.56 to $81.67 a barrel; heating oil fell 5.6 cents to $2.2518 a gallon; gasoline fell 3.79 cents to $2.1180 a gallon. Natural gas fell 24.8 cents to settle at $3.617 per 1,000 cubic feet.
