Gold prices rise to $1700 an ounce

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Gold prices rise to $1700 an ounce

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Gold rose 2.1 percent to finish Tuesday at $1,700.10 an ounce.

26 January,2012 02:29 am

Gold prices are climbing after the Federal Reserve said it will keep interest rates near zero until 2014 at the earliest to help jump-start economic growth.Its the first time the settlement price has topped $1,700 an ounce since early December. Investors tend to buy gold when theyre worried about a weak dollar causing inflation.The Fed says the economy is growing moderately but there has been slowing in global growth. Its decision to keep interest rates low will make loans more affordable for businesses and consumers in hopes that they will spend more to aid the economic recovery.In other trading, oil, gasoline, natural gas and grains are higher. Soybeans and heating oil are lower.