Gold prices were drooping Wednesday in New York as rising bond yields led to a firmer dollar.

Benchmark bullion contracts were losing $3.90 at $660.80 an ounce in recent action. The exchange-traded funds that own inventories of the precious metal were down also,

iShares Comex Gold Trust

(IAU) - Get Report

by 0.6% and

streetTracks Gold Shares

(GLD) - Get Report

by 0.5%.

One euro was buying $1.342 lately, down from $1.3429 late Tuesday. The greenback was fetching 123.64 yen, up from 123.35 previously. The price of dollar-denominated assets such as gold tends to decline as the value of the paper currency increases.

As for other precious metals, silver prices were off 5 cents at $13.28 an ounce following gold's weakness. Platinum was rising slightly at $1,301 an ounce, up $2.50 on worries labor talks in South Africa may result in a work stoppage.

Among base metals, copper prices remained firm on continued concerns over strikes causing supply interruptions. Benchmark contracts were trading at $3.40 a pound in recent action.

Copper consumption grew 6.7% in the year through April vs. the same period a year ago, while production of refined metal increased only 3.8%, resulting in a small deficit for the period, according to new data from the U.K.-based World Bureau of Metals Statistics.

Lehman Brothers upped its price target on diversified miner

Rio Tinto

( RTP) to $355 a share from $315 and reiterated an overweight rating.

The shares were recently trading for $309, down 0.8%.

Reliance Steel & Aluminum

(RS) - Get Report

announced it would acquire

Clayton Metals

for an undisclosed sum. Shares of Reliance were recently rallying 0.5% at $59.