Gold and silver prices slipped Friday as the dollar strengthened, reinforced by news of a sharp uptick in wholesale price inflation and better-than-expected retail sales.Energy prices ended higher while base metals and agricultural futures finished the session in a mixed range. The U.S. dollar got a break from its persistent weakness Thursday after stronger-than-expected readings on producer price inflation and consumer spending boosted the greenback against the euro and Japanese yen. The Labor Department's producer price index, a measure of wholesale prices, jumped by 1.1 percent in September — more than double the rise economists had expected. Also Thursday, the Commerce Department said retail sales rose by 0.6 percent last month, twice the projected rate.



Hints that inflation is rising, and signs the economy remains healthy, can bolster the dollar. They also support the case for the Federal Reserve to leave interest rates unchanged after a deep cut last month. The Fed lowered its target federal funds rate a half percentage point in September — in the process undercutting the dollar — to alleviate fears that pinched credit conditions and financial market turmoil would further curb already sluggish economic growth.

Investors pulled back from precious metals as the dollar became a more attractive investment. December gold fell $2.90 to settle at $753.80 an ounce on the New York Mercantile Exchange, while December silver dipped 8.2 cents to $13.903 an ounce.

Next week brings fresh readings on consumer price inflation, the housing market and other economic data — all of which could alter investor expectations for the Fed's next move on interest rates. The central bank meets again Oct. 30-31.

"The focus for gold, and of course for the dollar, now shifts to next Wednesday and Thursday's slew of economic data and what they might reveal about the state of the U.S. economy and the resultant need, or lack thereof, to tinker with interest rates any further," said Jon Nadler, senior analyst with Kitco Bullion Dealers, in a report.

December copper fell 1.65 cents to settle at $3.6525 a pound on the Nymex. Overseas, industrial metals finished mixed on the London Metal Exchange, with nickel, copper and lead ending lower and zinc and tin closing higher.

Oil prices settled at a record high of $83.69, up 61 cents, as the market added to hefty gains a day earlier. News Thursday that crude inventories had fallen unexpectedly last week supported prices amid concerns that supplies may not meet demand in the fourth quarter.

The Energy Information Administration on Thursday reported U.S. oil inventories fell by 1.7 million barrels last week, compared with analysts' forecast for a build of 1 million barrels. Gasoline inventories swelled at the same time, while stockpiles of distillates such as diesel fuel fell in line with expectations.

Crude hit an all-time trading high of $84.05 a barrel on Friday. Gasoline futures for November ticked up 1.85 cents to settle at $2.0851 a gallon. Heating oil futures fell 0.09 cent to $2.2464 a gallon.

Meanwhile, corn futures rallied following the U.S. Department of Agriculture's monthly report on supply and demand of agriculture products. The USDA raised its U.S. corn production forecast slightly to 13.32 billion bushels, but the estimate came in below analysts' consensus projection of 13.46 billion bushels.

The agency trimmed its estimate for U.S. soybean production to just shy of 2.6 billion bushels.

December corn futures rose 7.25 cents to settle at $3.51 a bushel on the Chicago Board of Trade, while November soybeans fell 4.75 cents to close at $9.7675 a bushel.

The USDA also projected U.S. wheat stockpiles will dwindle to the lowest level in 59 years reflecting lower production and a sharp rise in exports this year. Wheat crops around the world suffered bad growing conditions, leaving many countries short on supply. That's pushed demand for U.S. wheat sharply higher this year.

The USDA expects wheat stocks will fall to 307 million bushels at the end of the crop year, the smallest stockpile since 1949. Wheat futures for December fell 25.5 cents to end at $8.575 a bushel, after rising the 30-cent maximum a day earlier.