Gold futures plummet to 2-week low as dollar gains on euro

Other commodities traded mixed, with crude oil surging to a new record of $117 and wheat prices plummeting.

The dollar edged higher against the 15-nation euro, rebounding from a record low reached Thursday after European officials expressed concern that its strength was becoming harmful. Luxembourg Prime Minister Jean-Claude Juncker, the head of the euro finance ministers' group, told reporters Thursday that the euro was moving in a "direction I don't consider desirable."

The euro bought $1.5795 in afternoon trading, down from $1.5888 late Thursday. A stronger dollar encourages investors to sell hard assets like gold and silver, which are viewed as inflation hedges since they're known for holding their value in times of rising prices.

Gold for June delivery dropped $27.70 to settle at $915.20 an ounce on the New York Mercantile Exchange, after earlier falling as low as $907.30, its lowest level in two weeks.

Gold was "heavily weighed down by an initial retreat in crude oil and the dollar's rapid ascent," Jon Nadler, analyst with Kitco Bullion Dealers Montreal, said in a note.

Gold had closed above $948 on Wednesday, giving investors hope that the metal might resume its climb toward the $1,000 barrier that it first broke in March.

Other precious metals also fell sharply Friday. Silver for May delivery dropped 48.5 cents to $17.820 an ounce on the Nymex, while May copper fell 2.40 cents to settle at $3.888 a pound.

In energy futures, crude oil shot up to another record after a militant group in Nigeria said it had sabotaged a major oil pipeline operated by a Royal Dutch Shell PLC joint venture. The group promised further attacks on the country's petroleum industry, rattling investors who have pushed oil prices to record highs for five straight days.

Light, sweet crude for May delivery rose to a new trading record of $117 in after-hours electronic trading Friday. Earlier, the contract rose $1.83 higher to settle at a record $116.69 a barrel on the Nymex.

Other energy futures also rose. May gasoline futures rose 3.15 cents to settle at a record $2.9893 a gallon, while May heating oil futures rose 2.49 cents to settle at $3.2923 a gallon.

In agriculture futures, wheat plunged to its lowest level in four months as investors bet that favorable weather in the U.S. Midwest would boost crops.

Wheat for May delivery lost 43 cents to settle at $8.70 a bushel on the Chicago Board of Trade, after earlier falling as low as $8.62 a bushel.

Other agriculture futures traded mixed Friday. Soybeans for May delivery gained 11 cents to settle at $13.615 a bushel, while May corn fell 4 cents to settle at $5.995 a bushel.