Gold futures plummet to 2-week low as dollar gains on euro

Gold prices plunged to a two-week low Friday after the dollar gained some muscle against the euro, giving investors reason to sell the metal traditionally viewed as an inflation hedge.

Other commodities traded mixed, with crude oil surging to a new record of $117 and wheat prices plummeting.

The dollar edged higher against the 15-nation euro, rebounding from a record low reached Thursday after European officials expressed concern that its strength was becoming harmful. Luxembourg Prime Minister Jean-Claude Juncker, the head of the euro finance ministers' group, told reporters Thursday that the euro was moving in a "direction I don't consider desirable."

The euro bought $1.5795 in afternoon trading, down from $1.5888 late Thursday. A stronger dollar encourages investors to sell hard assets like gold and silver, which are viewed as inflation hedges since they're known for holding their value in times of rising prices.

Gold for June delivery dropped $27.70 to settle at $915.20 an ounce on the New York Mercantile Exchange, after earlier falling as low as $907.30, its lowest level in two weeks.