Metals rise on weak dollar

Gold prices advanced Monday, extending overseas gains amid a weaker dollar, higher energy prices and uneasiness over recent world political events. Other commodities markets closed in a mixed range.

Gold continued to climb out of its late-June trough of $638 an ounce, with the August contract adding $7.70 an ounce to close at $662.50 on the New York Mercantile Exchange. The dollar edged lower against the euro, which lent support to gold. The metal often moves opposite from the dollar on the assumption that investors will shift assets as they seek so-called safer havens for their funds.

"In Japan, you had a three-week market high this morning and that pulled the markets up," said George Gero, vice president of RBC Capital Markets Global Futures. That combined with "very high energy prices and a minefield everywhere you look in the geopolitical arena, it's certainly no surprise the metals are moving higher."

Investors have been nervous since car bombs were found in London and Glasgow, Scotland last week.

Gero noted that a move above $665 would be a bullish signal to traders and could spark additional gains in gold. Other precious metals tailed gold higher. September silver closed at $12.82, up 6.3 cents an ounce.

In the energy market, gasoline futures finished higher as BP PLC's shutdown of a large oil-processing unit raised supply concerns. Oil prices felt the pressure of expectations for a corresponding drop in demand for crude from the Whiting, Ind., refinery. The unit, closed for maintenance, processes about 250,000 barrels of crude daily.

Reports of violence in Nigeria's oil-producing region helped keep the session's price floor near $72, however. Gunmen attacked an oil facility late Sunday and seized two foreigners, private security contractors said. In a separate incident over the weekend, two senior Nigerian employees of Royal Dutch Shell PLC were being held hostage.

Light, sweet crude for August delivery fell 62 cents to close at $72.19 a barrel on the Nymex. The contract briefly rose to touch $73 and fell as low as $71.81 during the session. Gasoline futures jumped 3.5 cents to settle at $2.3446 a gallon.

While the price of Nymex's West Texas Intermediate crude weakened, the price of Brent crude hit an 11-month high of $76.34 a barrel on ICE Futures in London.

Meanwhile, copper prices climbed as the London Metal Exchange posted a large outflow of inventory and as workers at a major Chilean mine went on strike.

Government-mediated negotiations broke down Friday at Chile's Collahuasi copper mine, one of the world's largest, Dow Jones Newswires reported. The mine is jointly owned by Xstrata PLC and Anglo American PLC. Management has formally offered a 3.2 percent pay hike; the miners are demanding an 8 percent raise plus other benefits.

Nymex September copper rose 3.5 cents to $3.6295 a pound.

In Chicago, corn prices sagged amid forecasts for wetter, cooler weather in the Midwest.

"If we get the weather that's forecast for the next week, and then a cooling, we'll be right at the front door of pollination and in very good shape," said DTN analyst Gary Wilhelmi.

December corn edged down 1.6 cents to close at $3.502 a bushel on the Chicago Board of Trade. Wheat for September also pulled back 10.4 cents to $5.994 a bushel.

At the same, soybean prices jumped over the $9 mark for the first time since 2004. The U.S. Department of Agriculture reported its estimates for a sharp decline in soybean acreage late last month, and the market is still pricing in those expectations, said Mike Zarembski, senior futures analyst for optionsXpress Inc.

Buyers continue to flock to the market driven by fears that soybean supplies could get even tighter, and prices higher, before the end of the year, he said, adding that high prices are needed to spur additional production in Argentina and Brazil, also major soybean exporters.

November soybeans added 6 cents to close at $9.02 a bushel.