Advertisement
YOU ARE HERE: LAT HomeCollections

Commodities : Friday. Sept. 19, 1986 : Precious Metals Prices Jump

September 20, 1986|From Associated Press

Precious metals futures soared Friday on what analysts said is a growing belief that the rate of inflation is likely to increase.

All of the metals posted strong gains in active markets, with platinum up the daily allowable limit of $25 an ounce.

In some other markets, soybeans were higher and U.S. Treasury bonds were sharply lower.

The action in metals can be traced to remarks made Thursday by Treasury Secretary James A. Baker III, according to John Norris, chief precious metals trader with Citibank in New York.

Baker said the dollar will have to fall further in relation to foreign currencies to improve this country's balance of trade, unless Germany and Japan cut their interest rates.

The market, Norris said, "is expecting further interest rate cuts and is perceiving a willingness to accept some future inflation in return for (economic) growth."

On the Commodity Exchange in New York, gold settled $18.20 to $19.50 higher with the September contract at $436 an ounce; silver was 24.4 cents to 26.9 cents higher with September at $5.995 an ounce.

Livestock and meat prices were mixed within a narrow range.

Advertisement
Los Angeles Times Articles
|
|
|