Gold prices continue record-setting pace

AP News
Posted: Oct 14, 2010 4:13 PM
Gold prices continue record-setting pace

Gold continued its record-setting pace Thursday by attracting investors looking for a haven as they wait to see if the Federal Reserve will take steps to bolster the economy.

Gold for December delivery added $7.10 to settle at $1,377.60 an ounce, a record high. Some analysts believe it could reach $1,400 an ounce by the end of the year.

"For now, the short-term investor interest remains supportive of gold prices testing new highs," Barclays Capital analysts wrote in a research report.

Gold has hit a series of record highs in recent weeks as the dollar has grown weaker against other currencies amid speculation about what measures government policymakers may implement to help economic growth.

The Fed is expected to buy government bonds, which would cut interest rates. That would make gold and other currencies where interest rates are higher more attractive than the dollar.

The dollar fell to a 15-year low against the yen Thursday and touched its lowest level against the euro since January.

Other commodities also have benefited from the weaker dollar. Since commodities are priced in dollars, they are more of a bargain for traders who buy them with foreign currencies.

In December metals contracts, silver added 50.3 cents to settle at $24.435 an ounce; copper lost .05 cent to settle at $3.8155 an ounce and palladium gained $7.90 to $601.55 an ounce. January platinum rose $5.20 to settle at $1,712.60 a pound.

Oil prices fell Thursday as fresh economic reports added to speculation about the Fed. The government said jobless claims rose last week for the first time in three weeks and wholesale prices edged up.

Benchmark crude for November delivery fell 32 cents to settle at $82.69 a barrel on the New York Mercantile Exchange.

In other Nymex trading in November contracts, heating oil lost 1.68 cents to settle at $2.2839 a gallon, gasoline fell 2.96 cents to settle at $2.1365 a gallon and natural gas dropped 3.9 cents to settle at $3.657 per 1,000 cubic feet.

Grains were mixed. Corn for December delivery fell 2 cents to settle at $5.6725 a bushel. November soybeans added 22.5 cents to settle at $11.99 a bushel and December wheat lost 2 cents to $7.0075 a bushel.


Associated Press writer Stephen Bernard contributed to this report.