Gold passes 800 dollars an ounce as Fed prints more money

L to R: Samantha Ranatunga, Chairman, HVA Foods PLC; Jan Müggenburg, Chief Executive Officer, Müggenburg Group; Graham Stork, Chief Executive Officer, HVA Foods PLC; Sarva Ameresekere, Group Chairman, George Steuart & Co. Ltd.

NEW YORK, Oct 31, 2007 (AFP) - The price of gold passed 800 dollars an ounce on Wednesday for the first time since 1980 after the US Federal Reserve lowered its key short-term interest rate, the New York Mercantile Exchange said.

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Gold futures for December touched 800.80 dollars on the exchange (NYMEX) after the Fed made the cut amid a persisent housing slump and fears of inflation spurred by record high crude oil prices.

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The Fed, in a widely expected decision, cut its short-term federal funds interest rate by a quarter of a percentage point to 4.

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50 percent.