Gold fluctuates against stocks

Tuesday, July 30, 2002 | 9:46 a.m.

NEW YORK -- Gold prices gained for the first time today in six sessions as stocks fell, making the precious metal more attractive as an alternative investment.

Gold prices have mirrored changes in the stock market in recent months on speculation that demand for gold would strengthen or wane depending upon the performance of equities. Declines in stocks helped boost gold to a 2 1/2-year high in early June.

"Whatever happens in the stock market, you can see the opposite happen to gold demand," said David Alexander, who prepares coin collections for auction at Stack's Coin Co. in New York. "Because of these startling gyrations in the stock market, people are attracted to hard assets, notably gold, that are sometimes overlooked in more cheerful times."

Gold for December delivery was up $2.70, or 0.9 percent, at $307.20 an ounce as of 11:48 a.m. on the Comex division of the New York Mercantile Exchange. Gold futures, which have fallen 7.3 percent from the June 4 high of $331.50, still were up 10 percent for the year.

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