NP: Gold prices rise as Fed cuts rates, dollar falls
The interest rate reduction weighed on the dollar, because a country's currency becomes a less attractive investment if it offers lower rates. A declining dollar tends to boost precious metals prices.
Gold futures for December delivery rose $24.50 to $906.60 an ounce on the New York Mercantile Exchange.
Gold, regarded as a safe-haven investment, also drew investors due to their anxiety about the turbulent stock market. So far this week, the Dow Jones industrial average has lost more than 10 percent.
