NEW YORK (AFX) - Lower prices for crude oil and commodities in general sent gold and other precious metals sharply lower Monday, with the moves accelerating when chart-based selling was triggered, analysts said.
Silver was especially hard hit after that metal had outperformed gold at times over the summer but has now fallen back below a key uptrend line. A couple of the contacts cited momentum-based selling of metals after prices also fell late last week, with funds said to be among those liquidating long positions.
December gold settled down $20 at $597.30 a troy ounce on the New York Mercantile Exchange.
'The main factor has been the recent weakness in the crude-oil market,' said Dan Vaught, futures analyst with A.G. Edwards.
Currency-market activity lately has also put some weight on gold, said Vaught. Although the euro was up slightly for the day as of gold's close, it had nevertheless fallen from roughly $1.2875 early last week to a low Monday of $1.2650. Euro weakness and dollar strength tends to undermine metals such as gold.
Vaught added, 'I suspect the precious metals also suffered to some extent from reports this weekend that Iran might have said something about being willing to suspend its nuclear program for a couple of months.'
December silver settled down $1.055 to $11.24 an ounce. The contract fell as far as $11.20, its lowest level since July 26.
Most-active December copper settled down 15.05 cents at $3.4175 per pound. The contract traded to a low of $3.3850 per pound -- its lowest level since Aug. 31.
Front-month September copper settled 14.40 cents lower at $3.4340 per pound.
October platinum settled down $28.90 to $1,200.60 an ounce. October platinum tumbled as far as $1,186 overnight, its weakest level since June.
December palladium settled down $17.55 to $316.05 an ounce. December palladium bottomed at $313 overnight, but held just above Friday's roughly six-week low of $312.50.
New York crude oil futures fell to a five-month closing low Monday, dipping below $65 a barrel as Iran hinted it could temporarily stop its nuclear program and the Organization of Petroleum Exporting Countries agreed to hold oil output steady.
The front-month October light, sweet crude contract closed down 71 cents at $65.54 a barrel, it's lowest close since March 28. The contract fell as low as $64.85 a barrel before settling down 64 cents at $65.61 a barrel.
October unleaded gasoline settled down 1.45 cents to $1.5946 a gallon. October heating oil settled down 3.78 cents at $1.8054 a gallon.
October natural gas settled down 0.5 cents at $5.670 per million British thermal units.
On the New York Board of Trade, Arabica coffee futures for December settled 2.40 cents lower at $1.0375 a pound.
December cocoa settled down $2 at $1,478 per metric ton.
Futures on raw sugar in foreign ports for October settled down 0.48 cent at 11.41 cents a pound.
On the Chicago Board of Trade, September corn settled down 3 cents to $2.2875 per bushel. September soybeans settled down 5 cents at $5.32 per bushel. December wheat settled down 2.50 cents to $4.13 per bushel.
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