Gold rises as deepening turmoil triggers purchase By Moming Zhou, MarketWatch Last update: 8:38 a.m. EDT Sept. 17, 2008
NEW YORK (MarketWatch) -- Gold futures rose on Wednesday as news of the government takeover of the biggest U.S. insurance company triggered safe-haven buying for gold, while a weakening dollar and rising crude prices also boosted the precious metal. Gold for December delivery rose $6.2, or 0.8%, to $786.70 an ounce on early trading on the Comex division of the New York Mercantile Exchange. The U.S. government on Tuesday seized control of American International Group with an $85 billion bailout aimed at averting a potentially catastrophic bankruptcy. The move was the government's latest and most dramatic attempt yet to staunch an ever-widening wound to the world's financial system. See full story. Deepening financial upheavals also hit the dollar, which fell against the euro and the British pound. The dollar DXY 78.88, -0.21, -0.3%) , which tracks the value of the greenback against other major currencies, lost 0.5%. A weakening dollar tends to raise dollar-denominated gold prices. See Currencies. Also moving gold prices was crude oil. After slumping 10% in the past two sessions, crude gained $3, or 3.5% in early Tuesday trading. Other metals also moved higher. December silver rose 4.1% to $10.95 an ounce, October platinum added 2.3% to $1,093.40 an ounce, and December palladium rose 1% to $228.25 an ounce. Copper for December delivery climbed 0.3% to $3.10 a pound. |