Gold, other metals recover a day after plunge

AP News
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Posted: Jun 21, 2013 3:25 PM

Gold and other metals are recovering a day after taking a plunge on news that the Federal Reserve was contemplating an end to its bond-buying program.

Gold for August delivery rose $5.80, or 0.5 percent, to settle at $1,292 an ounce. It had plunged $88 the day before, hitting its lowest point since September 2010.

The drop came after the Federal Reserve said it might start to slow down its bond purchases later this year, providing the economy continues to recover. That sapped the appeal of gold as an alternative investment by strengthening the dollar and making it less likely the U.S. would see inflation.

Energy prices fell. Crude oil lost $1.45, or 1.5 percent, to $93.69 a barrel in New York.

Crop prices ended lower.