Precious Metal Prices Rise Considerably

  While gold prices soar to another new high Monday  the U.S. dollar slides to a 15-month low.

Photo: Precious Metal Prices Rise Considerably

Precious Metal Prices Rise Considerably

  Gold for December delivery  grew as high as $1,111.70 on the New York Mercantile Exchange before settling at $1,101.40 an ounce, up $5.70, or 0.5 %.

  The gains came as the ICE Futures US dollar index, which measures the dollar against other currencies, dropped more than 1 % to its lowest level since August 2008.

  The dollar weakened after finance ministers from the Group of 20 countries pledged over the weekend to maintain their stimulus efforts and keep interest rates low to further a global economic recovery. The G-20 leaders did not address how they might support currencies that have fallen in response to low rates.

  U.S. rates are near zero, which has contributed to the dollar's decline. Gold, meanwhile, is seen as a hedge against the weak dollar and inflation, which investors fear could become a problem down the road if the greenback keeps falling.

  Other commodities that are bought and sold in dollars have benefited from the greenback's slide because foreign investors can buy more with less money.

  In other Nymex trading, December silver rose 10.5 cents to $17.48 an ounce, while December platinum rose $19 to $1,364 an ounce. December copper futures added 1.5 cents to $2.9675 a pound.

  In addition to the weaker dollar, jitters over tropical storm Ida helped support higher energy prices Monday. However, forecasters say the storm will likely weaken and bypass most drilling platforms and refineries in the Gulf of Mexico.

  Light, sweet crude for December delivery rose $2 to settle at $79.43 a barrel.

  Heating oil futures rose 5.92 cents to $2.0627 a gallon and gasoline futures gained 5.75 cents to $1.9818 a gallon.

  Grain prices surged on the Chicago Board of Trade.

  December wheat futures jumped 22.75 cents to $5.20 a bushel, while corn for December delivery rose 19 cents to $3.86 a bushel.

   January soybeans gained 17 cents to $9.72 a bushel.

   Prices for cotton, coffee and orange juice also rose.

   The review was represented by the Associated Press.