Metal, energy prices drop as investors worried by slowing growth pare bets; gold gains

Metal, energy prices drop as investors pare bets

NEW YORK — Industrial metals and energy prices are tumbling along with stocks as more worrisome economic news follows the Federal Reserve’s downgrade of its outlook for the recovery.

The latest bad news includes the Commerce Department’s report of a drop in exports during June.

While stocks are falling, the dollar and yen have shot higher, and gold prices are up slightly. Investors perceive the U.S. and Japanese currencies as well as gold as safer assets. So they tend to buy them when reports suggest the economic recovery is weakening.

Gold is inching up $1.20 at $1,199.20 an ounce. Other metals used more for industrial purposes, rather than as an investment, are sliding.