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ND: Gold Soars As Traders Seek Safety Investment
 
Gold prices soared again Wednesday as the global financial woes sent traders swarming to the safety of the precious metal again. December gold moved to $918.30, up $36.80 on the session. The metal hit a 10-day intraday high of $924.90.

The Federal Reserve slashed its benchmark interest rate by a 50 basis points to 1.5 percent. A number of other central banks announced rate cuts as well. This included the Bank of Canada, the Bank of England, the European Central Bank, Sveriges Riksbank, and the Swiss National Bank.

The Bank of Japan did not announce a rate cut, but expressed its strong support for the policy actions.The Reserve Bank of Australia reduced its key interest rate by 100 bps to 6% on Tuesday

The Fed's rate cut came well ahead of its scheduled meeting on interest rates, due to take place near the end of the month. But expectations for an inter-meeting cut had been rising lately, as the financial crisis has continue to play havoc with markets and threatened to drag down the world's economy.

The greenback saw mixed results as traders considered the future impact of the rate cuts. The dollar slipped away from a yearly high against the euro, bounced higher against the yen and remained steady with the British pound.

In other metal trading, silver prices gained 59 cents to moved at $11.97 an ounce and copper climbed 10 cents to $2.434 a pound.

Crude oil fell nearly 2% to drop below $89 a barrel in electronic trades amid highly-volatile trading. Oil traders also await the Department of Energy's weekly inventory data later this morning. Natural gas fell 5.4 cents to $6.714 per million British thermal units.

The precious metal has added about $80 an ounce already this week with the global credit crunch on the minds of all traders. Gold gained again on Tuesday and closed up $15.80 on the session. The metal added $29.30 on Monday. The precious metal closed last week down more than $55 an ounce as the dollar continued its rebound against other majors.

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