Skip to: Content
Skip to: Site Navigation
Skip to: Search

December 4, 2008 3:01:11 PM CST

Learn about Newser Points »

« Back to the grid | Next story »

Gold Hits Record $1K per Ounce

Posted Mar 13, 08 1:03 PM CDT in Business 

(Newser) – Gold hit $1,000 per ounce for the first time today, the BBC reports, as investors flock to commodities. The precious metal is already up 20% on the year. “Every bit of bad US economic data boosts gold in two ways,” said Fortis Bank, both because gold is a “safe haven” asset and because the dollar drops on expectations of US interest-rate cuts.

The US dollar is falling precipitously—at one point today it fell below 100 yen, and hit a new low against the euro at $1.56. The situation will probably worsen, too, if the Federal Reserve again reduces rates as expected. That, combined with an uncertain stock market, makes commodities like gold and oil look especially appealing.

Source BBC

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Think 1% Is Low? He Could Go to Zero

    Oct 30, 08 9:45 AM CDT
    Think 1% Is Low? He Could Go to Zero Yesterday Ben Bernanke cut the federal funds rate to an ectomorphic 1%—but the Fed might not be done yet. More and more analysts are predicting that the central bank will have to cut rates all the way to zero if it wants to get the economy moving again. But don't get too excited, writes the New York Times: A 0% funds rate would apply only to interbank lending, and wouldn't mean free money for consumers.
    More »

  • Stocks Sink as Bernanke Hints at Rate Cut

    Oct 7, 08 1:28 PM CDT
    Stocks Sink as Bernanke Hints at Rate Cut Federal Reserve Chairman Ben Bernanke warned today that the financial crisis has not only darkened the country's current economic performance but also could prolong the pain. The Fed chief's gloomy assessment appeared to hint of an interest rate cut on or before the Fed’s next meeting later this month. Despite the sign of a possible rate cut, the Dow was down around 300 points midday.
    More »

  • Fed Weighs Emergency Rate Cut

    Oct 2, 08 9:28 AM CDT
    Fed Weighs Emergency Rate Cut Mounting fears that the credit crisis and continually worsening economic data will push a stagnant US economy into a severe recession has spurred the Federal Reserve to consider cutting interest rates from their current 2%, the Wall Street Journal reports. Even if the House follows the Senate in passing the $700 billion bailout, some action is likely. More »

  • Wait on Rate Hikes Until Crisis Eases

    Sep 3, 08 5:55 PM CDT
    Wait on Rate Hikes Until Crisis Eases Critics claim the Federal Reserve has been too eager to cut interest rates, and that lax policy has exacerbated inflation. But the Fed should hold its ground, Desmond Lachman argues in the American, until the housing and credit markets are clearly on the rebound. The credit crunch has prompted banks to compensate with higher spreads and tighter lending standards, which should offset inflationary concerns. More »

  • Fed Likely to Hold Rates— for Now

    Jun 25, 08 6:17 AM CDT
    Fed Likely to Hold Rates— for Now Despite fears that inflationary forces are revving, the Federal Reserve will probably hold the interbank federal funds rate at 2% today, hoping the bargain basement rate can help kick-start a stalled economy that’s been hamstrung by a tenacious housing slump and a credit crunch hangover, Reuters reports. More »

An Afghan man speaks on a phone as he walk past a gold shop at a shopping complex in Kabul, Afghanistan, Thursday, March 13, 2008.   (AP Photo/Rafiq Maqbool)
Richard Rozhko, owner of Howard Jewelry in Chicago, holds a gold coin at his store Monday, March 10, 2008.   (AP Photo/Paul Beaty)
An Afghan man walk past a goldsmith shop at a shopping complex in Kabul, Afghanistan, Thursday, March 13, 2008.   (AP Photo/Rafiq Maqbool)
Gold coins and jewelry are seen at Howard Jewelry in Chicago on Monday, March 10, 2008.   (AP Photo/Paul Beaty)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 5)

Tags

Federal Reserve • inflation • US dollar • interest rate • interest rate cut • commodities • gold


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »