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The Associated Press December 7, 2010, 4:43PM ET

Commodities prices fall as dollar strengthens

Commodities are mostly falling as the dollar rebounds.

Gold, oil and wheat all dropped Tuesday after the dollar rose 0.4 percent against an index of six other currencies. Commodities tend to fall when the dollar rises.

Commodities had surged early in the day. In morning trading, oil traded above $90 a barrel for the first time in more than two years, and gold rose to a new 2010 high at $1,432.50 an ounce. But the gains didn't last as the dollar strengthened.

Oil for January delivery fell 69 cents to settle at $88.69 a barrel. Gold for February delivery fell $7.10 to $1,409 an ounce. Wheat for March delivery fell 8.25 cents to $7.8475 a bushel.

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