rally

New York silver, gold and platinum all dropped sharply Tuesday, helped by falling crude-oil prices and a rally in the U.S. dollar.

The latter was spurred along by furthering concerns over the economic picture in Europe and Asia.

Oil prices rebounded Tuesday, jumping back above $115 barrel after the dollar weakened against the euro and a rally in heating oil attracted new buyers into energy markets.

The buck may be turning into a bull. The U.S. dollar extended its recent rally against major currencies on Friday as commodities fell and European and Japanese economies faltered.

Oil prices touched a three-month low, sending stocks soaring, while the Fed decided to keep its key rate steady to bolster the economy.

New York gold was driven lower during an earlier sell-off Wednesday, but recovered some of its losses to close above $900 an ounce after the US dollar showed weakness.

A late oil rally and reduced inflation fears also lent support for the yellow metal.

Oil tumbled more than $5 a barrel Tuesday in its second big drop this week, hurling crude back to levels not seen since June 26 as traders wary about the health of the global economy cashed in gains from oil's recent rally.

Light, sweet crude for August delivery fell $5.33 to settle at $136.04, after earlier slumping as low as $135.14.

The decline followed a $3.92 slide on Monday, bringing oil's two-day drop to more than $9.

Oil prices fluctuated Thursday as some investors sold to lock in profits from a rally that added 6.4 percent to the price of a barrel of crude in less than two days while others bought as the dollar dropped to new lows against the euro.

Gold surged to a record in aftermarket trading Wednesday after oil rallied above $100 a barrel and investors bet the Federal Reserve will again slash interest rates — boosting the metal's appeal as a hedge against inflation.