NEW YORK (AFX) - Gold and silver prices extended their recent rally Wednesday, as the safe-haven metals become more attractive investments in light of Middle East fighting and dollar weakness.
Silver futures led precious metals higher, as the September contract hit its highest level since June 6. Fund and speculative buying was seen supporting the markets.
September silver settled up 50.5 cents at $12.245 an ounce. It traded as high as $12.290.
Most active December gold settled $5.30 higher at $664.10 a troy ounce, down slightly from the day's high at $668.20.
'We are seeing nice continued moves higher,' said Dave Meger, metals analyst at Alaron.
'Middle East tensions are playing a factor, along with relative weakness in the dollar,' he said.
Tom O'Brien, editor of the Gold Report, pointed to Tuesday's breakdown in the U.S. dollar index as key to watch near term for the precious metals markets.
O'Brien noted that dollar-denominated gold trades both as a commodity and a currency. 'It is a reserve currency and when the dollar is going down, central banks say maybe we'll buy,' he said.
October platinum settled up $2.10 at $1,260.60 an ounce.
September palladium settled up $7 at $328.95 an ounce.
U.S. spot gold at 4:20 p.m. ET traded at $651.25 an ounce, up $4.00.
September copper settled down 0.2 cent at $3.5910 per pound. During the session, traders said volume was light in expected slow summer trading conditions.
The September crude contract settled up 90 cents at $75.81 after rising as high as $76.50 earlier.
September gasoline settled up 6.15 cents at $2.3377 a gallon.
September heating oil settled up 4.90 cents at $2.1294 a gallon.
September natural gas rose 22.5 cents to settle at $7.799 a million British thermal units.
On the New York Board of Trade, Arabica coffee futures rallied to one-month highs. September ended 5.40 cents higher at $1.0370 a pound and December gained 5.30 cents to $1.0775 a pound.
The most-active September cocoa contract finished unchanged at $1,487 per metric ton.
October futures for raw sugar in foreign ports settled down 0.37 cent at 14.53 cents a pound.
On the Chicago Board of Trade, September corn ended up 6.75 cents at $2.4750 per bushel. August soybeans ended 8.25 cents higher at $5.8175 per bushel. September wheat settled 9 cents higher at $4.0150 a bushel.
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