17
March
Gold gets lift from dollar weakness
17 March 2010 MarketWatch
NEW YORK (MarketWatch) -- Gold futures gained 1.5% by the official close on Tuesday, and rose further in electronic trades as the dollar weakened after the Federal Reserve kept interest rates unchanged and maintained its pledge to keep them low for an extended period of time.
Speculation had mounted that the central bank might remove its pledge to keep interest rates at historically low levels "for an extended period of time." The move would have likely fueled a rally in the dollar and pressured gold and other commodities.
A lower dollar tends to lift gold, since it makes the precious metal more attractive as a hedge.
http://www.marketwatch.com/story/gold-jumps-as-dollar-drops-before-fed-2010-03-16?dist=afterbell
