Energy and metal prices lead commodities lower on concerns about global recovery

Commodities continue pullback on economic concerns

NEW YORK — Commodities fell again Friday as investors became increasingly pessimistic about the global economy.

Energy and metals led the retreat. Oil prices touched a two-month low.

Uneasy investors pulled money out of riskier investments like commodities and poured money into safer assets like the dollar and bonds. A stronger dollar has an especially bad effect on commodities because it makes them less attractive to overseas investors.

The ICE Futures US dollar index, which measures the dollar against six other currencies, rose 0.8 percent after gaining 0.7 percent Thursday.

A mixed report on employment added to concerns about the U.S. economy. While the jobless rate dipped unexpectedly to 9.7 percent in January from 10 percent, employers also cut 20,000 jobs, more than the 5,000 economists expected, according to Thomson Reuters. The two numbers are calculated from different surveys.

Analysts say the drop in the unemployment rate was encouraging, but not enough to assuage investors concerned about a sustainable recovery.

Investors remain on edge about how some struggling European nations, including Portugal, Spain and Greece, will cope with mounting budget deficits. Greece has been veering closer to defaulting on its debt, while Portugal’s opposition blocked austerity measures Friday aimed at trimming that country’s ballooning budget deficits.

Gold fell again as the dollar strengthened. April gold fell $10.20 to settle at $1,052.80.

A stagnant economy also weakens demand for industrial metals, like platinum, palladium and silver.

Platinum for April delivery fell $40.20, or 2.7 percent, to settle at $1,475.10 an ounce. March palladium fell $10.15, or 2.5 percent, to $398.25 an ounce. Silver for March delivery dropped 52 cents, or 3.4 percent, to $14.83 an ounce.

March copper fell 2.15 cents to settle at $2.8575 a pound.

Oil prices retreated for a third straight day. Benchmark crude for March delivery lost $1.95, or 2.7 percent, to $71.19 a barrel on the New York Mercantile Exchange. It fell as low as $69.50 a barrel, its lowest price since Dec. 15.

In other Nymex trading in March contracts, heating oil dropped 6.04 cents at $1.8748 a gallon, and gasoline fell 6.44 cents to $1.8864 a gallon.

Grain prices most fell. The Department of Agriculture’s upcoming crop report, due out Tuesday, is likely to drive trading in the coming days.

Wheat for March delivery fell 2.5 cents to settle at $4.7325 a bushel. Soybeans fell 0.5 cents to $9.135 a bushel, while corn dropped 2.5 cents to $3.515 a bushel.

Sugar and orange juice, which have been volatile in recent weeks, both fell.