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Commodities: Gold prices plunge

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Date: Wednesday 02 Apr 2008

LONDON (ShareCast) - Gold prices fell sharply on Tuesday while crude oil fell modestly as investors switched out of commodities and into stocks on fresh hopes that the US economy will be able to successfully steer out of the credit crisis.

Sentiment was boosted by a strong rally on Wall Street as investors go stuck into the new quarter.

Gold for June delivery plunged $33 to settle at $887.80 an ounce on the New York Mercantile Exchange. The precious metal fell to an earlier low of $876.30.

Elsewhere among precious metals platinum, copper and silver also fell.

Crude for May delivery fell 60 cents to settle at $100.98 a barrel on the New York Mercantile Exchange.

Oil prices had dropped more than $2 earlier in the day but managed to partly recover. Futures were hit by expectations that data may show US crude inventories increased last week.

The rising US dollar also put pressure on oil and gold prices Tuesday.