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Latest Business News

Gold, Silver Up As Dollar Weakens

Wednesday, August 16, 2006 5:33:53 PM

NEW YORK (AP) - Gold futures rose Wednesday as the dollar weakened after inflation data was released that apparently reinforced the Federal Reserve's recent decision to pause in monetary tightening.

December gold settled $6.10 higher to $639 a troy ounce on the New York Mercantile Exchange, while September silver added 20 cents to $12.285.

"The market seems to be reacting well to the slightly weaker U.S. dollar," said Dave Meger, senior metals analyst with Alaron Trading. "We have some news as of late that would appear to back the Fed's attitude of a slightly slowing economy that is going to keep inflation relatively in check and reduce the need for further rate hikes. That has put a little pressure on the dollar."


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