METALS : Gold Surges $4, Boosted by Shaky Global Stock Markets
NEW YORK — Gold prices continued to rise Wednesday in reaction to wobbly world stock markets and a weak dollar. Investors frequently turn to precious metals when stocks and other holdings lose value.
In New York, gold for current delivery gained $4.20 to close at $417.20 an ounce on the Commodity Exchange, adding to Tuesday’s increase of $5.80. Republic National Bank of New York later quoted gold bullion at $416.60, up $4.10 from late Tuesday’s bid. At one point Wednesday, the precious metal traded at $425, near a 14-month high.
The surge in gold mirrors concern about the weakening U.S. economy and expectations that the Federal Reserve Board will need to reduce interest rates to renew economic confidence, said Jeffrey Nichols of APMA (Canada) Ltd., a Toronto investment consulting firm.
“Last week, when the dollar was strong, gold ignored a number of bullish developments,” said Nichols, who cited volatility in world stock markets as the key factor.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
