Gold, silver falter for 3rd day; oil turns higher
NEW YORK — Gold and silver prices fell for a third straight day Friday, even after the dollar reversed early gains and slid lower.
Oil prices rose slightly, while soft commodities were mixed.
Gold for December delivery lost $7.30 to $991.60 an ounce on the New York Mercantile Exchange, finishing the week down 1.9 percent. It was the second day in a row that gold closed below $1,000 after a nine-day streak of closing above that level.
December silver dropped 23.5 cents to $16.06 an ounce — its lowest close in nearly a month.
Commodities began to fall early in the day as the dollar rose, following their usual pattern of trading. But buying still didn't pick up even after the dollar fell back, which would normally spur commodities higher.
The dollar and commodities often trade in opposite directions. Foreign demand for commodities tends to pick up when the dollar weakens since commodities are mainly priced in dollars.
Commodities took a big hit this week as investors moved out of risky assets and back into the dollar for safety amid a sell-off in stocks. Meanwhile, the Federal Reserve issued more assurances this week that inflation is still largely in check. That hurt demand for gold, which is often used as a hedge against inflation.
Among other metals, October platinum fell $23.90 to $1,284.60 an ounce. Palladium also fell. Bucking the trend, December copper futures rose 3.1 cents to $2.7405 a pound.
Oil prices rose for the first time in two days as tensions escalated over Iran's nuclear ambitions. Light, sweet crude for November delivery added 13 cents to finish at $66.02 a barrel. Oil prices faltered earlier this week amid the slumping dollar and government data showing energy demand is still weak.
Gasoline for October delivery lost nearly 2 cents to $1.6205 a gallon, and heating oil for October delivery fell less than a penny to $1.6771 gallon. Natural gas added 3 cents to $3.9850 per 1,000 cubic feet.
Grain prices were mixed on the Chicago Board of Trade.
December wheat futures dropped 23.25 cents to $4.4975 a bushel, while corn for December delivery slipped 2.5 cents to $3.34 a bushel.
November soybeans rose 6.5 cents to $9.26 a bushel.
Among other soft commodities, cocoa and sugar rose, while coffee and cotton fell.
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