NEW YORK | Gold and silver plummeted Friday after Wall Street posted another big loss and forced investors to dump holdings in precious metals to raise badly needed cash.
Gold for December delivery fell $27.50, or 3.1 percent, to settle at $859 an ounce on the New York Mercantile Exchange after earlier falling as low as $829. The metal has dropped for two straight sessions, at least temporarily halting a big move upward as investors shifted funds into gold and silver to take advantage of their perceived safe-haven appeal.
But as U.S. stocks continue to slide, large institutional investors have been forced to sell gold and other commodities to meet margin calls and other requirements, said Jon Nadler, analyst with Kitco Bullion Dealers Montreal.
Other precious metals also fell. December silver lost $1.275, or 10.6 percent, to settle at $10.60 an ounce on the Nymex, while December copper lost 26.15 cents, or 10.87 percent, to $2.1445 a pound.
In energy markets, crude oil fell to its lowest level in 13 months as the intense downward pressure on financial markets forced a massive liquidation of crude contracts.
Light, sweet crude for November delivery ended the day $8.89 lower at $77.70 a barrel on the Nymex. It was the lowest settlement price for a front-month crude contract since Sept. 10, 2007. Oil is now down 47 percent from its July 11 record price of $147.27.
In other Nymex trading, heating oil futures lost 20.86 cents to settle at $2.21 a gallon, while gasoline futures fell 22.03 cents to settle at $1.807 a gallon.
In agriculture markets, grain prices traded lower on the Chicago Board of Trade.
Wheat for December delivery fell 41.25 cents to settle at $5.635 a bushel, while December corn fell 30 cents to settle at $4.0825 a bushel. November soybeans fell 70 cents to settle at $9.10 a bushel.
