Gold prices dropped $59, the most in nearly two years Wednesday, leading a decline in commodity prices on speculation the slump in the dollar will end soon as the Federal Reserve eases the pace of interest-rate reductions.

On a day that saw broad declines for all commodities, gold for April delivery, which had hit a record high of $1,034 an ounce Monday, plunged $59, or 5.9 percent, to finish at $945.30 an ounce, its biggest single-session loss since June 2006.

Some of this sell-off in commodities...can also be attributed to the perceptions that fears are lifting somewhat in the financial markets, said Jon Nadler, a Montreal-based senior analyst at Kitco.

In other metal trading, copper for May delivery lost 11 cents, or 3.1 percent, to $3.63 a pound. June palladium slid $25.2, or 5.1 percent, to $489.65 an ounce.

April platinum lost $81, or 4.1%, to $1,887 an ounce. May silver ended lower by $1.51, or 7.6 percent, to $18.45 an ounce.

Alongside the metals, crude-oil futures were also pummeled, with the April contract losing $4.94, or 4.5 percent, to end at $104.48 a barrel