Gold futures rally past $735 after Fed cut
U.S. gold futures rallied past $735 an ounce Tuesday to their highest level since 1980 after the U.S. Federal Reserve cut interest rates a half-point.
Gold for December delivery traded as high as $735.50 an ounce in electronic trading late Tuesday.
It eased back to $734.20 around 7 p.m. ET -- still up $10.50 from its $723.70 close, during the regular New York Mercantile Exchange session.
Gold had closed down 10 cents.
The record intraday all-time high for gold was $875, set Jan. 21, 1980.
The Fed cut the federal funds interest rate -- the rate at which banks lend to each other overnight -- to 4.75 percent from 5.25 percent Tuesday afternoon.
The Federal Open Market Committee said it cut the rate "to forestall some of the adverse effects on the broader economy that might otherwise arise from the disruption in financial markets and to promote moderate growth over time." // Copyright 2007 by United Press International
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