Gold and silver fell after a decline in commodity prices reduced demand for precious metals as a hedge against inflation. Other non-metal commodities also dropped.The Reuters/Jefferies CRB Index of 19 commodities fell as much as 2.3 percent today, led by declines in soybeans, wheat and crude oil. Gold climbed to $1,033.90 an ounce, the highest ever, on March 17. Oil, gasoline, corn, soybeans, wheat and platinum also advanced to records this year.
Gold futures for June delivery dropped $15, or 1.6 percent, to $921.50 an ounce on the Comex division of the New York Mercantile Exchange. The metal gained 10 percent this quarter and dropped 5.5 percent in March.
Silver futures for May delivery tumbled 63 cents, or 3.5 percent, to $17.31 an ounce. The metal gained 16 percent this quarter and fell 13 percent this month.
Soybeans fell the maximum allowed by the Chicago Board of Trade, and wheat dropped to a two-month low after a government report showed farmers will plant more to take advantage of record prices. Crude fell as much as 5.1 percent on speculation a slumping U.S. economy will slash fuel demand.
Commodities headed for the first monthly loss in four after reaching records in March. The CRB Index touched 385.41 today, down from the record 422.12 on March 13.
The US recession is affecting not only main indices these days, but also major commodities, currencies and the most popular bonds. Check out the gnuTrade Market Talk Section and its Forums for more information about current market trends.
