NEW YORK (AP) Shares of gold mining companies rose Tuesday after gold futures hit levels not seen since early May.
Gold for December delivery rose $17 to $1,640 per ounce after hitting $1,643.60 an ounce in earlier trading on the New York Mercantile Exchange. That's the highest price since May 4 when it ended at $1,645.20 per ounce.
The price rise came as stock investors grew more hopeful that China, Europe and the U.S. may take more steps to promote economic growth.
In China, the major city of Chongqing announced plans for $240 billion in industrial investments, adding to local spending initiatives. It was the fifth Chinese city to announce multibillion-dollar investment plans as government leaders try to reverse China's economic slowdown.There also were hopes that European leaders were making progress in their efforts to cope with the region's debt crisis. Spain and Italy's borrowing rates have been dropping recently on expectations that the European Central Bank will reach an agreement to allow both countries to borrow at cheaper rates. Spain raised 4.4 billion ($5.4 billion) in short-term debt Tuesday at sharply lower interest rates than in its last debt auction. Gold also benefited from a weaker dollar. Gold and other commodities are priced in dollars so a weaker dollar makes them cheaper for traders who use other currencies. In afternoon trading, Barrick Gold Corp. rose 84 cents, or 2.3 percent, to $37.28, Newmont Mining rose 71 cents to $48.64, Goldcorp Inc. rose $1.24, or 3.2 percent, to $39.66 and Kinross Gold Corp. was up 20 cents to $8.60.
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