NEW YORK — Gold prices soared Tuesday to a seven-month high as investors fled the equities market amid unrelenting concerns about the government’s ability to pull the economy out of recession. Oil and grain prices dropped sharply.
Investors turned to the gold market for safety as stocks took a beating.
The slide in stocks came as President Barack Obama signed his $787 billion stimulus bill into law and the nation’s biggest carmakers hurried to come up with restructuring plans. Despite the anticipation over the stimulus bill, investors have come to the harsh conclusion that the efforts will take time to have any meaningful impact.
“The more inflation there is, the more attractive gold is,” said Peter Schiff, president of Euro Pacific Capital.
Gold for April delivery jumped $25.30 to settle at $967.50 an ounce on the New York Mercantile Exchange, its highest close since July. Prices have risen 9.4 percent this year.
Other precious-metals prices were mixed. March silver rose 38.5 cents to $14.01 an ounce, while May copper futures fell 11.2 cents to $1.4425 a pound.
Oil prices dived nearly 7 percent Tuesday. Light, sweet crude for March delivery fell $2.58 to settle at $34.93 a barrel. The Associated Press
