Gold Slips Away from Record High
Source: RTTNews (1/29/08)
Gold edged lower in early dealings after topping the $930 mark for the first time ever in electronic trading.
The metal hit another record high on Monday as traders demonstrated they expect another interest rate cut later this week. February-dated gold contracts closed at $927.10, up $16.40 on the session. The precious metal reached as high as $929.80 in mid-day trading, topping the record high of $924.30 on Friday.
Traders are looking for another interest rate cut when the Federal Open Market Committee concludes its highly-anticipated two-day meeting on Thursday. Most experts predict rates to be lowered by either 25 or 50 basis points. This comes after the Fed's surprise 75 basis point cut to 3.5% last week in an effort to stop the economy from slipping into a clear recession.