NEW YORK — Prices for metals and energy futures fell Tuesday after worries about the global economy had investors seeking the safety of the dollar.
New information showing weakness in Germany's economy lifted the dollar, which is seen as a safer investment in troubled economic times. Commodities took a further hit after the Conference Board said its consumer confidence index fell this month.
"The dollar strength is about euro weakness," said James Dailey, chief investment officer at Team Financial. Dailey noted that energy and metals trading has been closely linked to the move of the dollar recently and the trend is likely to continue in the short-term.
Commodities become more expensive, especially for foreign investors, as the dollar rises. That hurts demand and typically pushes prices lower.
April gold fell $9.90 to $1,103.20 an ounce. May silver fell 33.5 cents to $15.913 an ounce. Copper fell 9.4 cents to $3.2345 a pound. Platinum for April delivery fell $21.60 to $1,510.30 an ounce, while March palladium dropped $8.10 to $434.00 an ounce.
Benchmark crude for April delivery fell $1.36 to $77.25 a barrel. In March contracts, heating oil fell 4.65 cents at $2.0323 a gallon, while gasoline lost 5.02 cents at $2.0656 a gallon. Natural gas fell 11.7 cents to $4.778 per 1,000 cubic feet.
May wheat fell 9.5 cents to $4.9175 a bushel, while corn dipped 3.75 cents to $3.6775 a bushel. Soybeans fell 9 cents to$9.525 a bushel.
