Gold and other metals fall as dollar strengthens

Gold and other metals fall as dollar strengthens, reducing demand for safe-haven investments

Associated Press

Gold fell as the dollar advanced, diminishing the precious metal's appeal as an alternative investment.

The actively traded August contract for gold fell $14.70, or 1 percent, to $1,397.20 an ounce.

Gold has dropped 17 percent this year as the dollar and U.S. stocks have risen, reducing demand for safe-haven assets. The precious metal is unlikely to see any pickup in demand if stock markets remain close to their record levels, said Adam Klopfenstein, a senior market strategist at Archer Financial Services.

Other metals prices also fell.

Palladium for September delivery fell $8, or 1.1 percent, to $751.05 an ounce. Silver for July delivery dropped 31 cents, or 1.4 percent, to $22.41 an ounce. July platinum fell $6.30, or 0.4 percent, to $1,491.10 an ounce.

Only copper bucked the trend. Copper for July rose 3.85 cents, or 1.2 percent, to $3.396 a pound.

In agricultural futures trading, wheat for July delivery was little changed at $7.09 a bushel.

Corn for the same month rose 4.75 cents, or 0.7 percent, to $6.6050 bushel. Soybeans for July fell 3.75 cents, or 0.2 percent, to $15.2875 a bushel.

In energy trading, the price of oil fell slightly Tuesday as traders awaited the latest report on oil supplies and gasoline demand. Benchmark oil for July delivery fell 14 cents to finish at $93.31 a barrel.

Wholesale gasoline rose 3.31 cents, or 1.2 percent, to $2.8182 a gallon. Heating oil rose 3.15 cents, or 1.1 percent to $2.8649 a gallon. Natural gas rose 7 cents to $3.998 per 1,000 cubic feet.

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