Gold Rebounds After Ending Worst Year Since 1981

NEW YORK (AP) -

Gold prices started the new year higher Thursday, as the precious metal rebounded from its worst year since 1981.

The actively traded February contract for gold rose $22.90, or 2 percent, to $1,225.20 an ounce. Silver also rose sharply. The March contract jumped 75.8 cents, or 4 percent, to settle at $20.128 an ounce.

Gold fell 28 percent in 2013, as the Federal Reserve said it would start winding down part of its easy-money policies. The Fed’s bond purchases had helped send gold prices higher by getting investors worried about inflation.

In other metals trading, platinum for April delivery rose $30.80, or 2.2 percent, to $1,404.60 an ounce. Palladium for March delivery rose $11.95, or 1.7 percent, to $730.25 an ounce.

Copper for March delivery fell 1.5 cents, or 0.4 percent, to $3.3815 a pound.