Gold prices were plunging Wednesday as the dollar continued to rally and oil prices fell back on continued worries that the government will start cracking down on inflation.

Benchmark bullion futures were shedding $23.30 at $925.20 an ounce in recent action on the Comex division of the New York Mercantile Exchange.

Tough talk about inflation from government officials earlier in the week were still causing traders and investors to shun the broader materials complex. "The hawkish comments didn't sit well with any commodity," says Jon Nadler, a gold analyst at Montreal-based bullion dealer Kitco. "This verbal intervention is working."

On the technical analysis side of things, Nadler warns that if chart support at around $920 an ounce doesn't hold, the price of gold could see a dramatic slip back into the $800s.

The SPDR Gold Trust ( GLD - Get Report) shed 16 tons of its inventory of gold bullion as investors fled the metal.

As for currencies, one euro was buying $1.5739, down from $1.5783 Tuesday. The British pound was selling for $2, up from $1.9915 a day earlier. The dollar was trading for 107.6 Japanese yen, vs. 107.2 yen in the prior session. Prices of dollar-denominated assets such as gold tend to move in the opposite direction of the value of the dollar.

The CurrencyShares Euro Trust ( FXE - Get Report) was losing about 0.5%. The CurrencyShares British Pound Sterling ( FXB - Get Report) and the CurrencyShares Japanese Yen Trust ( FXY - Get Report) were both off around 0.4% in recent action.

In the precious metals patch, Golden Star Resources ( GSS - Get Report) was losing more than 5%, pushed down by falling metal prices.