Gold prices slide as dollar rises and stocks rally

AP News
Posted: May 14, 2013 5:34 PM

Gold extended its slump Tuesday, as a stronger dollar and surging stock market helped tug the price of the precious metal lower.

Gold for June delivery dropped $9.80 to settle at $1,424.50 an ounce on Tuesday. Gold prices have lost 3 percent this month.

Until recently, many investors bought gold as a form of protection. They expected it to rise when stocks, bonds and the dollar fell. But this year, the stock market's rally and the dollar's climb this year have lured investors out of gold.

Silver and copper also dropped Tuesday.

Silver for July delivery lost 31.7 cents to settle at $23.379 an ounce. Copper for July fell 7.15 cents to $3.288 a pound.

Platinum and palladium surged more than 1 percent as traders anticipated tighter supplies. Workers at Lonmin, one of South Africa's largest platinum producers, went on strike Tuesday. During a strike at one of Lonmin's mines last August, police shot dead more than 30 workers.

Platinum for July rose $17.40 to $1,501.90 an ounce. Palladium for June rose $8.45 to $727.15 an ounce.

In the market for grains and other crops, wheat edged up 1 cent to $7.1075 a bushel. Corn fell 3 cents to $6.525 a bushel.

Soybeans slipped 4.5 cents to $14.1475 a bushel.

In the market for oil and gas, the price of oil slid Tuesday after the International Energy Agency raised its forecast for U.S. oil production while cutting its prediction for worldwide crude demand.

Benchmark oil for June delivery dropped 96 cents to close at $94.21 a barrel on the New York Mercantile Exchange.

In other energy futures trading on the Nymex:

— Wholesale gasoline rose 2 cents to finish at $2.84 a gallon.

— Heating oil fell 2 cents to end at $2.87 a gallon.

— Natural gas rose 10 cents to finish at $4.03 per 1,000 cubic feet.