NEW YORK (AP) -- Shares of gold producers rose Wednesday after the U.S. Federal Reserve cut interest rates for the second time this month, sending gold prices soaring in afternoon trading.
The U.S. central bank cut the federal funds rate by a half point to 3 percent.
Just after the Fed decision, gold for April delivery jumped $4.70 to $935.50 an ounce in aftermarket trading on the New York Mercantile Exchange. Gold earlier settled $4.50 lower to $926.30 an ounce as investors awaited a final decision.
The cuts undermine an already weak dollar by making it cheaper to obtain credit, and subsequently bolster precious metals prices. The dollar and the price of gold usually move inversely, as each is considered a hedge against the other.
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http://biz.yahoo.com/ap/080130/gold_sector_glance.html?.v=1
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