Precious metals futures plunged Friday on the New York Commodity Exchange in the wake of weak May employment figures and amid uncertainty about whether a trade agreement will result from U.S.-Soviet summit talks. On other markets, grain and soybean futures fell; livestock and pork futures were higher, and energy futures were mixed. Peter Caudillo, an analyst with Josephthal & Co. in New York, said that the precious metals market was monitoring the progress of talks between President Bush and Soviet President Mikhail Gorbachev in Washington, D.C. ``If nothing positive comes of out of the summit, there are fears the Soviets will be forced again to sell gold in the open market'' to pay for overseas purchases, Caudillo said. He noted that gold has not been able to rally since mid-May, when heavy cash market selling of the metal sent prices tumbling. The U.S. Labor Department announced Friday that the nation's unemployment rate went fell 0.1 percenttage point to 5.3 percent in May while job growth amounted to a smaller-than-expected 164,000. ``The figures are indicating economic weakness, translating into a downward trend in inflation,'' he said. Gold is seen as a haven during inflationary periods. Silver futures were battered by gold's plunge, with the day's gains erased when investors liquidated near-month contracts. Gold settled $5.10 to $5.80 lower with the contract for delivery in June at $359.20 a troy ounce; silver was 2.8 cents to 4.4 cents lower with June at $5.046 a troy ounce. Grain and soybean futures were mostly lower on the Chicago Board of Trade as improving weather depressed prices. Soybeans dropped sharply when the July support level of $6.05 a bushel was breached and followthrough selling set in. National Weather Service forecasts called for dry conditions much of next week, which will facilitate planting of soybeans, said William Biedermann, an analyst with Allendale Inc. in Chicago. Soybean plantings had been delayed by soggy fields. Corn futures were pushed lower by progress made this week in planting the corn crop. Biedermann noted that sparce export business and a lack of progress in trade talks during the Bush-Gorbachev summit talks influenced corn futures. Fairly good weather, allowing for progress in the harvesting of the winter crop, pushed wheat futures lower. Wheat was 1 cent to 4{ cents lower with July at $3.29\ a bushel; corn was 1} cents to 2\ cents lower with July at $2.75} a bushel; oats were a { cent lower to 1 cent higher with July at $1.44 a bushel; soybeans were 5\ cents to 7{ cents lower with July at $6.02 a bushel. Energy futures were mixed on the New York Mercantile Exchange. The near-month contract for crude oil bounced back from Thursday's sharp selloff on belief that the drop was overdone, analysts said. Gasoline, while slightly higher, continued to be pressured from American Petroleum Institute inventory figures showing refinery runs increased sharply last month, while gasoline stocks also rose. West Texas Intermediate crude oil was 10 cents lower to 10 cents higher with July at $17.50 a barrel; heating oil was .15 cent to .78 cent lower with July at 48.73 cents a gallon; unleaded gasoline was .48 cent lower to .15 cent higher with July at 60.78 cents a gallon. Livestock and pork futures were higher in trading on the Chicago Mercantile Exchange. Live cattle were .17 cent to .52 cent higher with June at 74.47 cents a pound; feeder cattle were .20 cent to .72 cent higher with August at 84.37 cents a pound; live hogs were .35 cent lower to .25 cent higher with June at 65.75 cents a pound; frozen pork bellies were .85 cent to 1.42 cents higher with July at 65.05 cents a pound.
