UPDATES ON OCTOBER 1 2008

OCT 1 WEDNESDAY

Precious metals slip as dollar firms up.

Gold slipped by more than 2 % on Tuesday as a

firmer dollar and a calmer tone to stocks encouraged

profit taking while the other precious metals tumbled

in its wake.

Gold dropped away from a two-month high on Tuesday,

returning some of the sharp gains it saw in the previous

session. December gold ended at $880.80, down $13.60 for

the session. Earlier, prices hit as high as $920.20 in

overnight moves.

Market watchers are showing they are optimistic a new rescue

bill can be passed later this week. This comes a day after a $700

billion relief bill was voted down on Monday, causing

unprecedented losses for the markets. As investors turned to

gold as a safety outlet, the precious metal moved as high as

$932 in overnight trading.

Gold closed higher on Monday and then surged in post-market

trading after the House failed to get the necessary 218 votes to

pass the rescue plan. December gold closed at $894.40 an ounce,

up $5.90 on the session. After the metal markets closed, gold

moved as high as $915.30 as traders flocked to the safety option.