NEW YORK (AP) - Gold prices fell Monday as oil extended its decline and the U.S. dollar bounced back against other major currencies.
In other commodities markets, industrial metals recovered from a sharp drop a day earlier, while corn and soybean prices climbed.
Investors spent the day unsure what direction to take because the Federal Reserve, holding its regularly scheduled August meeting, wasn't scheduled to make its usual statement until after the close of trading in several commodities markets.
Gold tends to rise amid signs of inflation such as higher oil prices or a declining U.S. dollar -- and both elements were absent Tuesday. The dollar nudged higher against the euro, British pound and Japanese yen ahead of Tuesday's during the Federal Reserve's Open Market Committee.
As expected, the Fed held its benchmark rate steady at 5.25 percent -- an important support for the U.S. dollar. But major stock market indexes turned lower after the Fed released an economic assessment reiterating that inflation continues to be the central bank's main concern. Stock investors have been anxious for weeks over tightening consumer and corporate credit; that has led to severe volatility on Wall Street.
December gold fell $1 to settle at $682.30 an ounce on the New York Mercantile Exchange, before the Fed meeting ended. The metal moved higher in after-hours electronic activity.
Silver prices picked up 6.2 cents to settle at $13.095.
Meanwhile, the oil market pared its earlier losses to fluctuate in a range following the Fed meeting. The Fed's position remains that the predominant risk to the economy is that inflation 'will fail to moderate as expected.' Rising oil prices can signal an inflationary environment.
Light, sweet crude was quoted up 6 cents to $72.12 a barrel in late trading on the Nymex. Gasoline also turned higher, adding 1.31 to $1.939 a gallon.
The slight gains came after a mostly lower session and a huge decline on Monday, when oil prices sloughed off $3.42, or 4.5 percent. Crude has shed nearly $7 since reaching an all-time high over $78 last week.
Energy traders are also awaiting a weekly report on petroleum inventories, due out Wednesday from the Energy Information Administration.
Analysts expect the report to show a 1 million-barrel rise in gasoline stockpiles, according to a poll by Dow Jones Newswires. Refinery utilization is projected to rise for the seventh straight week, while U.S. crude inventories are forecast to drop by 2 million barrels as a result of the expected increase in refinery demand. The data cover the week ended Aug. 3.
Overseas, industrial metals mostly rebounded from a two-day slump as investors took lower prices as a buying opportunity. Copper, lead and zinc all posted gains on the London Metal Exchange, while nickel slipped. On the Nymex, copper for September delivery closed 3.3 cents higher to $3.5065 a pound.
In Chicago, agriculture futures were mixed, with corn and soybean prices trading higher while wheat prices wavered between slight losses and gains.
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