Gold, other metals rebound on falling dollar

NEW YORK — Prices for gold and other metals rebounded Wednesday as the dollar lost ground against other major currencies.

The dollar declined as stocks moved higher after reports showing stabilization in the manufacturing sector both in the U.S. and abroad stoked some risk taking among investors.

Precious metals benefit from a weak dollar as investors often use gold as a hedge against inflation.

Metals reversed big losses from the day before that had been sparked by a weak report on consumer sentiment.

After running up prices for commodities since early March on an improving economic outlook, investors have taken pause in recent weeks amid an influx of conflicting reports. This has made for a choppy market.

Gold for August delivery rose $13.90 to settle at $941.30 an ounce on the New York Mercantile Exchange.

September silver rose 16 cents to $13.76 an ounce, while July platinum gained $19.80 to $1,196.50 an ounce.

Among base metals, September copper futures added 5.85 cents to $2.3305 a pound. Aluminum rose 2.3 percent.

Energy prices fell on the Nymex, even as the government reported another decline in crude supply. A steady decrease in crude supply over the past few weeks has helped to push oil prices higher. But even with lower supplies, doubts remain about whether demand will bounce back anytime soon.

Benchmark crude for August delivery fell 58 cents to settle at $69.31 a barrel.

In other Nymex trading, gasoline futures fell 4.3 cents to settle at $1.859 a gallon and heating oil for August delivery fell 2.2 to settle at $1.7657 a gallon.

Grain prices were mixed on the Chicago Board of Trade.

September wheat futures fell 5.25 cents to $5.355 a bushel, while corn for September delivery rose 2 cents to $3.565 a bushel.

August soybeans rose 41.25 cents to $11.605 a bushel.

Cocoa, coffee, and cotton all fell.