Gold Prices Tumble; Dollar Is Mixed

Gold prices tumbled Wednesday, reversing gains earlier in the week, in a fall analysts attributed to a sharp slump in oil prices in commodities markets.

The dollar turned in a mixed performance, recovering slightly from the 2 1/2-year lows reached Tuesday.

Republic National Bank of New York said gold bullion was bid at $325.75 an ounce as of 4 p.m. EST, down $5 from the late bid Tuesday.

Fred Bogart, a senior vice president at Republic National Bank, said a drop in oil prices--which could lessen chances for rekindling higher inflation in the near future--depressed the price of gold, which is regarded as an inflation hedge.

Oil prices plunged on the New York Mercantile Exchange in response to a weekly report by the American Petroleum Institute of another rise in heating oil supplies.

The drop in gold wiped out gains early in the week, when bullion climbed to levels last seen in late August.