Gold, other metals recover a day after plunge

6/21/2013 1:15 PM
By Associated Press

Gold and other metals recovered Friday, a day after taking a plunge on news that the Federal Reserve was contemplating an end to its bond-buying program.

Gold for August delivery rose $5.80, or 0.5 percent, to settle at $1,292 an ounce. It had plunged $88, or 6 percent, the day before, hitting its lowest point since September 2010.

The drop came after the Federal Reserve said it might start to slow its bond purchases later this year, providing the economy continues to recover. That diminished the appeal of gold as an alternative investment by strengthening the dollar and making it less likely the U.S. would see inflation.

Both outcomes seemed less likely after the Fed laid out a timetable for when it might curtail its bond purchases, which would put upward pressure on U.S. interest rates. Traders had feared the Fed's economic stimulus would weaken the dollar and cause inflation in the U.S.

July silver rose 13.60 cents, or 0.7 percent, to $19.959 an ounce. Silver had plunged 8 percent on Thursday.

Copper for July delivery rose 3.35 cents, or 1.1 percent, to $3.0955 a pound. July platinum rose $5.70, or 0.4 percent, to $1,369.50 an ounce. September palladium rose $9.65, or 1.5 percent, to $674.75 an ounce.

Energy prices fell. Crude oil lost $1.45, or 1.5 percent, to $93.69 a barrel in New York. The price of oil slid on prospects of a tighter supply of cash and slower growth in China.

In other trading, wholesale gasoline fell 3 cents to $2.75 a gallon. Heating oil fell 3 cents to $2.84 per gallon. Natural gas fell 11 cents to $3.77 per 1,000 cubic feet.

Crop prices ended lower.

July wheat fell 2.5 cents to $6.98 a bushel. December corn fell 4.25 cents to $5.5625 a bushel and November soybeans fell 11.5 cents to $12.735 a bushel.


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10/21/2014 | Last Updated: 11:31 PM