Gold hit a record high above $1,000 (U.S.) an ounce on Thursday and oil reached an all-time peak over $110 a barrel as a historically weak dollar and falling equities triggered a flight to commodity markets.
Soft commodities such as cocoa and coffee also rallied and industrial metals rose but were restrained by fears of a global economic slowdown.
The dollar sank to a 12-year low, and an all-time low versus the euro, while share markets lost ground as the investors fretted over the health of the U.S. economy and global financial sector.
U.S. gold futures rallied to a $1,000 an ounce while spot gold jumped to a fresh peak of $997.50 an ounce and was at 997.10 an ounce just after noon in London, up more than 2 per cent from $981.90/982.70 an ounce in New York on Wednesday.
“The environment of other asset classes has made commodities very attractive,” said Michael Lewis, global head of commodities at Deutsche Bank.
“They look very much like a safe-haven, because if you look at other asset classes there is a lot of risk associated with equities, carry trades and so on.”
Fears of a recession and expectations of aggressive rate cuts from the U.S. Federal Reserve to help shield the U.S. economy is piling pressure on dollar, while also boosting gold and oil as alternative investments.
Posted by: clifton
The next expected news is Euro to hit $1,000
Posted by: forwardone
Quote:
Originally Posted by clifton
The next expected news is Euro to hit $1,000
lol. Is that due to the strength of the Euro, or the pitiful state the dollar is in right now?
Posted by: clifton
Both I guess. But somehow the high Euro isn't making me happy at all
