Gold Rises to Record for Second Straight Day as Dollar Slides
This article is for subscribers only.
Gold futures surged to a record for the second straight day after the U.S. Federal Reserve pledged to keep borrowing costs low, eroding prospects for the dollar and boosting demand for the metal as an alternative investment.
Fed Chairman Ben S. Bernanke signaled yesterday that the central bank will maintain monetary stimulus. The Fed kept its target rate for overnight lending between banks at zero percent to 0.25 percent, while saying it will end $600 billion of bond purchases on schedule in June. The dollar fell to the lowest in more than two years against a basket of currencies.