When gold went over $800 an ounce in 1980 it was all that investors were talking about. With gold approaching its all time high of $875 you really aren't hearing much if anything. Is gold the next oil?
NEW YORK (AP) — Gold barreled above $800 an ounce Wednesday for the first time since 1980 as investors cheered the Federal Reserve's decision to lower its benchmark interest rate by a quarter point.
The Fed dropped its federal funds rate to 4.50 percent, as the markets widely anticipated. Lower interest rates tend to undermine the dollar and raise the allure of precious metals as an investment alternative. The dollar stumbled to another low against the euro following the Fed's decision on Wednesday, helping drive gold higher.
Gold last topped $800 an ounce in 1980, when prices reached as high as $875 an ounce in January. Adjusted for inflation, an $800 ounce of gold in 1980 would be worth more than $2,000 today.
While the $800 mark means something less than it did 27 years ago, gold prices have surged roughly $150 an ounce since mid-August |
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