Dollar Rises Strongly; Gold Up in U.S.
The dollar rose strongly in active trading on Thursday, apparently benefiting from the record setback on Wall Street and the accompanying slump in the bond market.
The dollar also was boosted by expectations that the Commerce Department’s report on retail sales for August, scheduled for release on Friday, will show a substantial increase.
Technical factors also helped.
Gold turned up in the United States after slumping almost $15 an ounce abroad. Bullion was quoted at $409 an ounce in New York, up $3 from Wednesday’s bid.
The expectations of higher interest rates, which triggered stock and bond markets’ drops, seemed to be a plus for the dollar, said Jim McGroarty, a vice president with Discount Corp. As investors got out of stocks and bonds, they apparently also took profits on foreign currencies, which boosted the dollar, McGroarty said. Foreign exchange markets were surprised when the dollar advanced, he added.