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Gold Falls After Fed Rate Cut

Tuesday, March 18, 2008 3:44:58 PM
By STEVENSON JACOBS

NEW YORK (AP) - Gold futures plunged Tuesday, retreating from $1,000 territory despite an aggressive U.S. interest rate cut that boosted other commodities.

Other futures rose broadly, with crude oil, copper and agriculture futures all trading higher.

The Federal Reserve slashed a key interest rate by three-fourths of a percentage point in a bid to free up locked credit markets and kick-start the U.S. economy. The move lowered the federal funds rate to 2.25 percent, the lowest level since in more than three years. Still, many investors had predicted a full point cut.


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