10/17/2013 4:08 PM
Gold logs biggest one-day gain in a month
By STEVE ROTHWELL
NEW YORK (AP) — Gold logged its biggest gain in a month as investors turned their focus back to the economy after Washington reached a deal to avoid a U.S. default.
Investors judged that the shutdown and the accompanying hit to consumer confidence would hurt economic growth in the final quarter of the year. That may require further economic stimulus from the Federal Reserve. Gold is considered a hedge against any potential inflation, which some investors fear could follow the prolonged stimulus.
Gold also got a boost from the falling dollar. The metal is seen as an alternative to the U.S. currency and typically advances when the dollar falls. The metal hit a three-month low October 11.
"If you're going back to basics, you're looking at continued low interest rates and some inflation," said George Gero, a commodities analyst at RBC Capital Markets. "All of that means that gold has been way oversold."
The price of gold for December delivery rose $40.70, or 3.2 percent, to $1,323 on ounce. That was its biggest one-day gain since September 19.
Other metals also rose.
December silver rose 58 cents, or 2.7 percent, to $21.95 an ounce. Platinum for January delivery rose $36.70, or 2.6 percent, to $1,434.90 an ounce. Palladium for December rose $24.25, or 3.4 percent, to $737.80.
Copper for December delivery fell 1.1 cents, or 0.3 percent, to $3.30 a pound.
In agricultural products, wheat, corn and soybean prices rose.
Wheat for December rose 4.5 cents, or 0.7 percent, to $6.86 a bushel. Corn for the same month climbed 0.3 cent, or 0.1 percent, to $4.43 a bushel. November soybeans rose 16.75 cents, or 1.3 percent, to $12.93 a bushel.
U.S. benchmark crude for November delivery slid as low as $100.03 before recovering a bit to close at $100.67 a barrel, down $1.62, or 1.6 percent.
In other energy trading, wholesale gasoline dropped 5.4 cents to $2.65 a gallon. Natural gas fell 1 cent to $3.76 per 1,000 cubic feet and heating oil fell 5 cents to $2.99 a gallon.
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