Gold Edges Higher a Day After a Steep Drop; Oil Up

NEW YORK (AP) -

Gold edged higher Friday, a day after plunging below $1,200 an ounce for the first time in three years.

The actively traded February contract rose $10.10, or 0.8 percent, to $1,203.70 an ounce.

Gold had dropped $41 the day before, after the Federal Reserve said it will scale back its massive bond-buying program next month. The Fed’s stimulus had driven many investors to bid up gold prices out of fear that it would cause inflation.

Silver for March delivery rose 26.7 cents, or 1.4 percent, to $19.453 an ounce.

Other metals also rose. High-grade copper for March delivery increased 1.25 cents, or 0.4 percent, to $3.3080 a pound. March palladium rose $2.45, or 0.4 percent, to $698.75 an ounce, and January platinum rose $13.80, or 1 percent, to $1,332.20 an ounce.

Crop prices rose.

Corn for March delivery rose 2.75 cents, or 0.6 percent, to $4.3325 a bushel; January soybeans rose 12 cents, or 0.9 percent, to $13.39 a bushel; and March wheat rose 2.75 cents, or 0.5 percent, to $6.135 a bushel.