Wednesday, October 8, 2008

Gold Futures Up by $25 after U.S. Federal Reserve Rate Cut

The cut by the U.S. Federal Reserve and several other central banks around the world helped gold futures rally again today, as at noon EST it was up by almost $25 an ounce to $911.80.

Investors have started to move their capital to the safe haven of gold as the U.S. dollar is starting to show signs of weakness after a period of strength.

U.S. Federal Reserve rates now stand at 1.5 percent, with the discount rate also dropping by half a point to 1.75 percent.

Other banks cutting rates were the European Central Bank, which dropped it rates from 3.75 percent from 4.25 percent. The Bank of England trimmed their rates from 5 percent to 4.5 percent. Other central banks cutting rates were the Swiss National Bank, The Bank of Canada and the Swedish Riksbank.

Now with more cuts hinted they're on the way, we should see gold start to make the upward run that has been expected for some time.

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