Daily Gold Update

Source: MarketWatch

New York— Gold futures rose Wednesday as the dollar fell against most major rivals after the Federal Reserve cut its key interest rate by half a percentage point, pushing commodities broadly higher. Gold ended regular floor trading before the Fed made the rate-cut announcement, but prices moved higher in anticipation of the cut. December gold rose $13.50, or 1.8%, to close at $755 an ounce on the Comex division of the New York Mercantile Exchange. It surged as high as $775.30 earlier. After Comex trading closed, the Fed cut overnight interest rates to 1%. Gold moved slightly higher in electronic trading.

"Some are beginning to extrapolate the medium- to long-term consequences of central-bank monetary creation," said Jeffrey Nichols, managing director at American Precious Metals Advisors. "The flashing lights that they are seeing ahead are the lights of inflation and currency depreciation," which could push gold higher. In currencies trading, the dollar moved lower against the euro and the British pound. The dollar index, which tracks the value of the greenback against other major currencies, lost 1%. See full story.