Gold, Silver Futures Gain on Expectations Fed Will Cut Rates

Source: Bloomberg  (9/18/07)

...Gold futures for December delivery rose $2.20, or 0.3 percent, to $726 an ounce at 9:02 a.m. on the Comex division of the New York Mercantile Exchange.


Gold and silver rose on expectations the Federal Reserve will cut U.S. interest rates today, weakening the dollar and boosting the appeal of the precious metals as alternative investments.

Prices paid to U.S. producers fell more than forecast in August, tempering concern about inflation as the Fed considers lowering its benchmark lending rate for the first time in four years. Gold has rallied in five of the past six bear markets for the U.S. dollar.

...Gold futures for December delivery rose $2.20, or 0.3 percent, to $726 an ounce at 9:02 a.m. on the Comex division of the New York Mercantile Exchange. The price earlier reached $730.50, the highest since May 12, 2006. Before today, gold had climbed 13 percent this year.

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