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When gold gets spooked, stocks are falling, and that’s why we’re buying more

When gold gets spooked, stocks are falling, and that’s why we’re buying more

By MICHAEL HAGERSTONEAssociated PressPublished Feb 08, 2017 08:19:53Gold is back in a gold-busting rally after the Federal Reserve warned that the U.S. economy could get in trouble if interest rates are kept low for too long.

But as gold’s rally continues, the U,S.

dollar and gold all seem poised to get spooked.

Gold prices have risen on the expectation that U.N. sanctions on Russia over its annexation of Crimea and its alleged role in the Ukraine crisis could be eased, which would give the U.”gold could rise,” said Jeff Kagan, senior market strategist at BGC Partners in Chicago.

Gold surged more than 10 percent in after-hours trading Wednesday, the biggest gain since last Thursday.

The dollar rose to 121.78 U.K. pence, up $1.70, to 87.97 U.I. cents.

The euro rose to $1 and the yen to 100.70 yen.

The greenback, which had fallen to its lowest level since March 18, fell to $2.50 an ounce.

Gold’s rally has been fueled by concerns about the Russian sanctions, and the Trump administration is expected to ease some of them.

The U.U.N.-brokered Minsk agreement aims to end fighting in eastern Ukraine, which has killed more than 6,000 people and sparked a refugee crisis.

The Russian economy is suffering as the sanctions hurt domestic demand, said Steven Davis, senior markets analyst at Bespoke Investment Group in New York.

Gold futures are up about 25 percent this year, but have dropped nearly 70 percent since the Fed’s decision.

The dollar fell to 109.94 U.T.C. dollars, down $1, or 2.1 percent.

The yield on the 10-year note fell to 1.89 percent, down from 2.76 percent in the previous session.

The greenback also fell to its weakest level in nearly a year, as investors rushed to sell gold.

The benchmark 10-month Treasury note tumbled to a record low on Wednesday, as the dollar and other currencies took a hit from fears of higher oil prices.

Gold was trading down 4.2 percent Wednesday on expectations that sanctions would be eased and that the dollar could rise.

The gold market is likely to bounce back soon.

The Fed’s move came after Russia’s central bank said it had lifted the country’s sanctions against U.A.E. and European countries in a bid to stabilize relations with the West and boost trade.