Gold Prices Soar To $1,100; Other Commodities Fall

SARA LEPRO

NEW YORK (AP) — Gold prices outshone other commodities Friday, soaring to a new high of $1,100 an ounce, as prices for copper, oil and soybeans fell.

Gold prices have been rallying in recent weeks as investors fear the government's low interest rate policy will undermine the dollar and lead to inflation, even though the Federal Reserve insists inflation will be subdued for some time.

Gold is seen as a hedge against a weak dollar and inflation. The precious metal has safe-haven appeal as well. Investors often look to gold because its value holds up well in times of economic uncertainty.

The Labor Department's worse-than-expected employment report on Friday signaled more bumps in the road to recovery and affirmed for investors that the Federal Reserve will have to keep interest rates low for the foreseeable future to support the economy. That will likely weaken the dollar even more.

On Friday, the dollar wavered between gains and losses against other currencies.

After briefly touching $1,100, gold for December delivery added $6.40 to settle at $1,095.70 an ounce on the New York Mercantile Exchange. Prices have risen for five straight days, gaining 5.3 percent this week.