| Gold back above $950 on weak dollar, firm oil
LONDON - Gold hit a one-week high above $950 an ounce on Wednesday as a falling dollar and strong oil prices encouraged investors to shift money back into the market after last week�s heavy sell-off. Gold rose as high as $951.50 an ounce and was quoted at $950.30/951.30 at 1600 GMT, against $934.60/935.40 late in New York on Tuesday. �We saw some pretty big falls last week and there has certainly been an increase in buying over the last day or so from investors who think those falls were overdone,� said Daniel Hynes, metals strategist at Merrill Lynch. �I think we are going to start seeing a little bit of a consolidation period, with gold trading around $1,000 in the next couple of weeks. I certainly expect to see the long-term upward trend continue after that.� Gold hit a record of $1,030.80 on March 17 before a broad sell-off in commodities dragged down prices to a one-month low of $904.65, briefly hurting investor confidence in the metal, seen as an alternative investment and a hedge against inflation.
Congress May Help on Municipal Bonds
Municipal governments and hospitals swept up in the credit crisis are pressing Congress to let them borrow money without having to make costly payments to troubled bond insurers. They back legislation to let thousands of banks nationwide that are members of the Federal Home Loan Bank system to guarantee tax-exempt municipal bonds, not currently allowed under federal law. .
Fairfax Chairman: County Should Buy Foreclosures for Housing
The chairman of the Fairfax County Board of Supervisors wants the county to buy foreclosed properties and sell them at below-market prices to families in need of affordable housing. Gerald Connolly's idea is aimed at creating affordable housing and helping protect neighborhoods in danger of decline because of foreclosures. Connolly, who is running for Congress, made the proposal Friday night in his annual State of the County speech. The idea is likely to get consideration for the board, where Connolly leads an 8 to 2 Democratic majority. Connolly says the money would come from an existing program that allocates nearly $23 million annually to preserve affordable housing. He told WTOP Radio that he expectss broad support from the board of supervisors. Fairfax County has see a jump in the number of home foreclosures in the past several months.
Money market funds face new pressure
Money market funds, reeling from the subprime crisis, are coming under fresh pressure from falling interest rates as the funds' yields shrink to leave little return after management fees have been covered. More funds are believed to have called on their parent companies for liquidity support. Others are waiving investors' management fees, a tactic commonly used the last time rates fell sharply. .
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