NEW YORK — Commodities prices fell sharply Wednesday over concerns that China might be moving to tighten oversight of its banks.
A top Chinese banking regulator said the country will more closely monitor its banks in an effort to prevent speculative bubbles from forming. Any restrictions on lending in China could cool the country's rapid growth and disrupt a broader global economic rebound.
That in turn could dampen demand for commodities.
Investors flocked to the safety of the dollar because of the concerns in China. The ICE Futures U.S. dollar index, which measures the dollar against six other currencies, rose 1 percent.
Gold for February delivery fell $27.40, or 2.4 percent, to $1,112.60 an ounce. Silver for March delivery dropped 92 cents, or 4.9 percent, to $17.88 an ounce, while platinum for April delivery tumbled $21.80 to $1,617.60 an ounce.
Energy prices fell. Crude for February delivery gave up $1.40 to settle at $77.62 a barrel. Most of the trading already moved to the March contract, which fell $1.58 to settle at $77.74 a barrel.
February heating oil fell 2.43 cents to $2.0211 a gallon, while gasoline dropped 1.26 cents to $2.0465 a gallon. February Natural gas futures lost 6.1 cents to $5.496 per 1,000 cubic feet.
Grain prices also fell. Wheat for March delivery dropped 3 cents to settle at $4.975 a bushel. Soybeans declined 13.5 cents to $9.50 a bushel, while corn declined 1.25 cents to $3.68 a bushel.
