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Spot gold surges to $1,760 after Fed announcement

August 9, 2011 | 11:42 am

Gold Spot gold surged to $1,759.90 Tuesday after the Federal Reserve said economic growth is “considerably slower.”

The precious metal has reached several highs in recent days, closing at record levels twice last week and at a new high of $1,710.20 an ounce Monday. Standard & Poor's historic downgrade of the U.S. credit rating Friday only fueled the rush into the safe-haven commodity as fears of a double-dip recession intensified.

Gold has been trending upward for nearly 11 years. A year ago, the metal cost $1,200 an ounce.

Earlier Tuesday, the price soared to $1,779 before slumping to $1,720 in the hours before the Fed announcement.


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-- Tiffany Hsu

Photo: Gold cast bars. Credit: Ron D'Raine/Bloomberg