NEW YORK (AP) — A sharp drop in the dollar is pushing prices for gold, oil and other commodities higher.
A new report showing a sharp falloff in new home sales last month sapped investors' optimism about the economy, driving the dollar lower after four days of gains.
The Commerce Department says sales of new homes plunged 11.3 percent in November to their lowest level since March, a reminder that the recovery will be slow. That means that interest rates will likely remain low for some time, which will keep the dollar in check.
Commodities become cheaper for foreign buyers when the dollar falls.
Gold is up $7.30 at $1,094 an ounce on the New York Mercantile Exchange. Oil prices are up more than 3 percent to $76.67 a barrel.
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