Commodity rally cools down

NEW YORK (CNNMoney.com) -- Oil, gold and silver prices started out the session soaring for a second day in a row Tuesday. But commodities took a breather as the euro's upward push lost steam.

The European currency had been getting a boost from signs that European debt problems may be easing: The Irish parliament is close to approving an emergency budget that will get that country back on track. And European finance ministers say they have sufficient reserves to help Spain and Portugal if those countries need it.

Earlier in the session, the U.S. dollar dropped 0.6% against the euro. But the euro pulled back in afternoon trading, falling 0.3% versus the greenback. Commodities, including oil, gold and silver, are priced in dollars, so a weaker greenback boosts prices.

Crude prices reversed direction as well, slipping 69 cents to settle at $88.69.

Prices had jumped 1.5% in the morning and crossed $90 per barrel for the first time since October 2008. The big gains came as stocks rallied, following President Obama's compromise with Republican lawmakers to extend the Bush-era tax cuts for two years. Crude has been on the rise since Nov. 23, gaining more than 10% during the two-week period.

"It looks like we're just taking a breather from a pretty good run," said James Williams, president and energy economist at WTRG Economics. "There's some profit-taking, as well as people saying maybe this agreement on the tax cuts isn't as rosy as we thought and folks considering whether $90 crude is really sustainable in a weak economy -- and of course we still have lots of concerns about Europe."

Gold also eased, slipping $7.10 to settle at $1,409 after surging to record levels above $1,432 an ounce earlier in the session.

Meanwhile, silver closed off session highs. The precious metal finished 4 cents higher after surging to fresh 30-year highs of $30.75 per ounce in earlier trading.