NEW YORK (MarketWatch) -- Gold futures rallied more than $20 Wednesday, pushing up by a weakening dollar after the U.S. Federal Reserve cut its key interest rate by half a percentage point. Gold for December delivery rose $22.20, or 2.5%, to $904.20 an ounce in early electronic trading. Gold has gained about $70 in three straight sessions since Monday. The Fed cut its benchmark rate to 1.5% from 2%. The European Central Bank and four other central banks also lowered their rates in an effort to head off the global financial turmoil. A weakening greenback boosts dollar-denominated gold prices as it reduced gold's appeal as an alternative investment.
