Dollar Declines as Gold Gains $8.75 an Ounce

Associated Press

Fresh worries about the soundness of the U.S. financial system contributed to a broad decline of the dollar Monday and helped to fuel a rally that propelled the price of gold to its biggest daily gain in nearly two months.

Both currency and bullion analysts said the appointment by the state of Maryland of a conservator for Old Court Savings & Loan, a privately insured thrift institution, rekindled traders’ memories of the crisis that led to the temporary closing of 70 Ohio savings institutions in March.

Republic National Bank in New York said gold bullion was bid at $324.75 an ounce as of 4 p.m. EDT, a gain of $8.75 from the late bid last Friday. It was the biggest daily gain for gold since the surge of March 19.