Gold, Silver Fall, Wheat Rallies

Ivaylo
27 Jun, 2007
New York City

Gold and silver fell Tuesday as investors refrained from buying, awaiting the Federal Reserve''''s meeting this week on interest rates. Copper futures lost as well, on lack of demand from China. Declining crude oil prices and advancing Treasury yields also pulled gold and on other metals lower, while wheat prices rallied on worries about tight supplies amid strong demand.

[R]5:30AM Gold and silver decline Tuesday, wheat rallies, oil and gasoline fall.[/R]

Gold for August delivery shed $7.40 to settle at $647.30 an ounce on the New York Mercantile Exchange, after plunging to $643.20, the lowest level since mid-January. August silver lost 59.7 cents to $12.280 an ounce, and July platinum dropped $23.40 to $1,268.30 an ounce. On the Nymex, July copper futures declined 8.4 cents to $3.3180 a pound. Other industrial metals also declined. Lead dipped 4% from record highs on the LME. Aluminum lost 0.8% and nickel fell more than 4%.

Energy prices retreated after advancing a day earlier. Crude oil futures for August delivery shed $1.41 to close at $67.77 a barrel on the Nymex, as the Energy Department''s weekly inventory report Wednesday is expected to show increases in crude and gasoline stockpiles. July gasoline futures sank 5.56 cents to finish at $2.2469 a gallon.

Wheat prices rallied back toward 10-year highs on the Chicago Board of Trade on concern about this year''s crop failing to meet demand. July wheat futures rallied 19 cents to close at $6.0850 a bushel on the CBOT. July corn slid 1.25 cent to finish at $3.6150 a bushel, while July soybeans added 2.75 cents to $8.0700 a bushel.