Gold Jumps On Dollar Weakness, Other Metals Follow

SARA LEPRO

NEW YORK (AP) — Gold prices have set another record, giving other metals a boost, after an early slide in the dollar.

December gold has settled up $12.10 at $1,114.60 an ounce on the New York Mercantile Exchange, after having earlier risen to a new high of $1,119.10 an ounce.

As in recent weeks, gold has taken its cue from the dollar, rising as the dollar fell to a fresh 15-month low in early trading. The dollar has recovered some of its early losses and is slightly higher, but its move is having little effect on gold prices.

The Federal Reserve's rock-bottom interest rates and the resulting decline in the dollar have encouraged investors to park their money in anything but cash, driving prices for stocks, commodities and bonds higher.