Gold and silver prices sank Wednesday after the dollar rebounded against the euro, diminishing the appeal of precious metals as inflation hedges. Copper also fell. Other commodities traded mostly higher, with crude oil hitting another record near $124 a barrel and agriculture futures rising broadly. The dollar ticked higher against the 15-nation euro amid negative economic data out of Europe. A government report in Britain said industrial production slipped between February and March, while troubling signs also emerged in Germany, Europe's largest economy. The euro bought $1.5402, down from the $1.5533 it bought in late Tuesday. A stronger dollar encourages investors to sell hard assets like gold and silver, which are considered safe, alternative investments during times of economic uncertainty and rising inflation. «The dollar comeback has definitely dented the gold market,» said James Steel, analyst with HSBC in New York. Gold for June delivery fell $6.50 to settle at $871.20 an ounce on the New York Mercantile Exchange, after earlier dropping as low as $864.40. Gold has given up most of the gains made this year and is 15 percent off its all-time high of $1,038.60 an ounce amid the stabilizing dollar and signs that credit turmoil may be nearing an end. Other precious metals also traded lower. July silver lost 16.5 cents to settle at $16.695 an ounce on the Nymex, while July copper fell 4.45 cents to settle at $3.834 a pound. In energy futures, crude oil shot above $123 for the first time Wednesday as investors sought to capitalize on the contract's seemingly relentless push higher. Light, sweet crude for June delivery hit a new trading record of $123.90 in after-hours dealings on the Nymex after reaching a record close of $123.53 a barrel, up $1.69, in the regular session Other energy futures also rose Wednesday. June gasoline futures rose 1.27 cents to settle at $3.1182 a gallon after earlier rising to a new trading record of $3.1323 on the Nymex, while June heating oil futures rose 9.38 cents to settle at $3.4473 a gallon after hitting their own new trading record of $3.4535. In agriculture futures, corn and soybean futures jumped for a second session on concerns that rainy weather in the U.S. Midwest will further delay planting and tighten supplies. Soybeans for July delivery shot up 32 cents to settle at $13.09 a bushel on the Chicago Board of Trade, while July corn futures rose 6.75 cents to settle at $6.13 a bushel. Other agriculture futures traded mixed. U.S. rice futures for July delivery added 50 cents to settle at $21.60 per 100 pounds on the CBOT, while July wheat futures fell 10.5 cents to settle at $8.075 a bushel.
