Gold Prices Inch Higher, But Finish The Week Down
By SARA LEPRO
NEW YORK (AP) ¿ Gold prices inched higher Friday, boosted by comments from China's premier that stirred fears about weakness in the dollar and U.S. Treasurys.
Energy and agriculture futures were mostly lower.
Chinese Premier Wen Jiabao warned the U.S. not to devalue the dollar through reckless spending. The U.S. is counting on Beijing to help pay for its stimulus spending by buying U.S. bonds.China already holds about $1 trillion of U.S. government debt, and a weaker dollar would devalue those assets. The dollar, Treasurys and gold are all considered safe-haven investments. As both the dollar and Treasurys weakened Friday, demand for gold rose as investors moved out of those assets and into gold in search of safety. Meanwhile, more uncertainty about the future of the U.S. economy plagued investors on Wall Street as stocks wavered after three straight days of gains. "All in all, what is providing support is uncertainty and volatility in the financial markets, and the continued move to safe-haven assets," said Carlos Sanchez, an analyst with CPM Group in New York.
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