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Gold Loses More Than $30
Gold turned back on Friday as the U.S.
Treasury Department announced Friday that it has set up a program to
guarantee the U.S. money market mutual fund industry. Gold for December
delivery closed at $864.70, down $32.30 on the session. Prices touched
as low as $828.50, nearly $100 off its highs of yesterday.
The government plan is part of a comprehensive plan of government
authorities to help calm turmoil in the financial markets. The
announcement came close on the heels of news that the Securities and
Exchange Commission had temporarily banned short selling in financial
stocks.
The U.S. dollar saw weakness on Friday against other major currencies.
The greenback added to a three-week low against the British pound and
also slipped versus the euro and Canadian dollar. Gold usually moves
opposite the dollar because of the precious metal`s hedge appeal.
Gold soared above $900 an ounce on Thursday and touched as high as
$926.00, a seven-week high, after gaining a stunning $70.10 in
Wednesday`s trading. Gold soared as traders turned towards the precious
metal as a hedge in an effort to avoid exposure to plunging equities.
Crude oil surged again in the afternoon and moved back above $103 a
barrel. Light sweet crude for October moved to $103.50, up $5.62 for the
session. Prices touched as high as $105.25 in afternoon trading.
Oil climbed amid government moves that pushed U.S. stocks sharply higher
and halted fears of lower energy demand. Earlier this week, crude oil
had dropped nearly $10 on Monday and Tuesday amid troubles in the U.S.
financial sector.
Oil has moved more than $9 off its multi-month low of $90.51 from
Tuesday. Crude oil closed modestly higher on Thursday but backed off its
daily highs above $102 per barrel after the Energy Information
Administration reported natural gas inventories were up 67 billion cubic
feet in the week ended Sept. 12, which was more than expected.
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