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Gold prices move higher on weak dollar
Gold prices extended their recent gains Monday and closed above $900 for the....
Gold prices extended their recent gains Monday and closed above $900 for the first time in three months, as a weakened U.S. dollar and volatile trading in the equity markets stirred up demand for the metal.Agriculture futures rose, while energy prices declined.The dollar fell against other major currencies Monday as corporate earnings reports pointed to further weakness in the U.S. economy.Caterpillar Inc. said its earnings fell 32 percent as plunging commodity prices left the company "whipsawed" in the fourth quarter. The heavy equipment maker also announced further job cuts that will ultimately wipe out 20,000 positions. Home Depot Inc. also announced big job cuts.The decline in the dollar helped boost gold, which is often used as a hedge against inflation and a weak greenback.Meanwhile, on Wall Street, early optimism over a deal between drugmakers Pfizer and Wyeth faded amid rising anxiety over companies’ financial results. All the major indexes wavered in afternoon trading after early advances. Still, the Dow Jones industrials finished up 38.47,or 0.48 percent, to 8,116.03.Demand for gold has picked up in recent weeks, as investors seek safety from the ongoing tumult on Wall Street. Investors often turn to gold in times of economic uncertainty because the metal’s value tends to hold up better than many other investments.Gold for April delivery raised $13 to settle at $910.70 an ounce on the New York Mercantile Exchange.Other precious metals prices also rose. March silver jumped 17 cents to $12.11 an ounce, while March copper futures rose 11.45 cents to $1.5865 a pound.Energy prices also had a volatile day of trading as investors weighed early gains in the equity markets against more signs of a deepening recession.Light, sweet crude for March delivery fell 74 cents to settle at $45.73 after fluctuating throughout the day.In other Nymex trading, gasoline futures rose just over 2 cents to $1.1765 a gallon, and heating oil fell less than penny to $1.4470 a gallon.Grain prices mostly rose on the Chicago Board of Trade.March wheat futures gained 9.75 cents to $5.9250 a bushel, while corn for March delivery added 3.25 cents to $3.9375 a bushel.