New York gold futures fell 2 percent on Wednesday as oil dropped and the U.S. dollar was propped up. A slumping economy was a cited culprit with fears of eroding demand for commodities. Silver and platinum gained 3.2 percent and 2.6 percent, respectively.
December crude-oil fell $5.23, or 7.4 percent, to close to $65.30 a barrel, retreating from Tuesday’s 10.4 percent gain.
December silver rose 32.5 cents to end at $10.455 an ounce.
January platinum gained $22.30 to settle at $880 an ounce.
Gold for December lost $14.90 to close to $742.40 an ounce.
"The stock market lost 6 trillion dollars of value this year and has thus far not shown too many signs of having bottomed. Under such poor conditions, commodities may well take a two or so year breather and either try to form a base or decline to somewhat lower levels," said senior analyst Jon Nadler at Kitco Bullion Dealers.
Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies. When prices are falling and economic activities are shrinking, gold prices tend to move lower.