Commodities: Gold and Oil trade higher as dollar slips back

By Michael Hewson

Date: Wednesday 18 Nov 2009

Gold continues its relentless march higher as another significant mark was hit in European trading today.

After US CPI came in slightly above forecasts, Gold hit a high of $1,153 as investors start to worry about possible inflation concerns.

It was also helped by comments by St.Louis Fed President Bullard who suggested that US policy would remain loose until 2012.

Crude Oil also gained ground against a weakening dollar pushing above $80 a barrel but was unable to break above the trend line resistance from the $82 highs which comes in just above the $80.20 area.

Unusually the Oil price has not closely tracked the sliding dollar over the past week or so, suggesting that there might be a cap in place in the short term.
For now the Oil price seems to be trading in a broad range between $75 and $80.

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE