By STEVE ROTHWELL
2014-03-05 06:01 AM
NEW YORK (AP) -- The price of gold fell Tuesday on tentative signs that Russia is not seeking to escalate the conflict in Ukraine.
Gold reversed its gains from Monday, when it jumped to a four-month high as investors sought safe assets as tensions escalated over Russia sending troops into Ukraine.
"Most of the losses occurred overnight given the developments in Eastern Europe," said Howard Wen, a precious metals analysts at HSBC. "If the situation doesn't escalate, bullion prices historically tend to fall down to where they were before the tensions started."
Gold for April delivery fell $12.40, or 0.9 percent, to $1,337.90 an ounce on Tuesday.
Other metals were mixed.
May silver fell 26.3 cents, or 1.2 percent, to $21.22 an ounce. Copper for the same month rose 4.25 cents, or 1.3 percent, to $3.21 per pound. Platinum for April delivery gained $3.40, or 0.2 percent, to $1,464.10 an ounce. Palladium for June rose $13.80, or 1.8 percent, to $763.80 an ounce.
In trading of agricultural commodities, wheat, corn and soybean futures all rose.
Corn for May gained 13.75 cents, or 2.9 percent, to $4.85 a bushel. Wheat for the same month rose 12 cents, or 1.9 percent, to $6.44 a bushel. Soybeans for May climbed 13.75 cents, or 1 percent, to $14.23 a bushel.
In energy trading, the price of oil dropped sharply after a big jump the day before. Easing tensions between Ukraine and Russia also reduced the likelihood of economic sanctions against Russia, one of the world's biggest exporters of oil.
Crude for April delivery fell $1.59, or 1.5 percent, to $103.33 a barrel. Natural gas added 17.5 cents, or 3.6 percent, to $4.67 per 1,000 cubic feet. Wholesale gasoline lost 3.5 cents, or 1.2 percent, to $2.99 per gallon. Heating oil fell 3.98 cents to $3.04 per gallon.