Gold & Oil Surges Dollar Falls
10-15-2007
AP
http://www.roguegovernment.com/news.php?id=4485
NEW YORK (AP) — Gold prices surged Monday as sharply rising oil prices and a falling dollar sparked concerns about inflation, prompting investors to seek the relative safety of precious metals.
The commodities markets advanced broadly. Precious and industrial metals prices rose as the energy market heated up. Agriculture futures were mixed at midday.
Gold prices surged as investors scrambled to the traditional haven against a sinking U.S. dollar and rising oil prices. The greenback approached its all-time low of $1.4282 against the euro, while crude oil prices soared above $86 a barrel for the first time. Investors will often shift funds to precious metals to allay concerns about the dollar's weakness, or to hedge against inflationary signs such as high oil prices.
December gold gained $8.40 to settle at $762.20 an ounce on the New York Mercantile Exchange. Late Monday, the 13-nation euro bought $1.42.
Nymex silver futures, which are often more volatile than gold, gave up early gains to settle down 4.8 cents at $13.855 an ounce.
Energy prices rose on a combination of supply concerns and news that Turkey may make a military strike against Kurdish rebels in northern Iraq. Light, sweet crude for November delivery jumped $2.44 to $86.13 a barrel, a record settlement price. The contract traded at a peak $86.22 a barrel in earlier trading.
Although the Organization of Petroleum Exporting Countries decided last month to boost its production in November, the group said in a report that oil production by other countries is likely falling at the same time, while world energy demand is rising. The report exacerbated a perception that oil supplies in the U.S. remain tight, a view supported by Energy Information Administration data showing shrinking stockpiles of crude.
Still, crude inventories remain above average for this time of year, according to the EIA, and not all analysts are convinced of a supply squeeze. Speculative interest in the energy market has reached a fevered pitch, however, as open interest in oil and gasoline futures has surged. Open interest refers to the number of contracts that have not expired, been exercised or fulfilled by delivery.
"End user demand looks questionable; inventories have come off, but they're not what I would call dire," said JPMorgan energy strategist Katherine Spector. "The Turkish headlines are attracting some attention, certainly."
The Turkish government said Monday it will ask parliament to approve a military operation against Kurdish rebels, which it calls a terrorist organization, in northern Iraq. There have been several skirmishes along the Turkey-Iraq border already. Although oil coming out of the region has been erratic, a total disruption would be bullish for the market, analysts said.
Gasoline futures for November rose 7.24 cents to settle at $2.1575 a gallon, while heating oil futures rose 6.08 cents to $2.3072 a gallon on the Nymex.
The dollar's weakness provided a boost for commodities generally, which are quoted in dollars and appear cheaper to foreign buyers as the currency declines.
Industrial metals largely strengthened. Copper, zinc, tin and aluminum posted gains on the London Metal Exchange, while nickel and lead prices dipped. Nymex copper for December delivery picked up 3.35 cents to settle at $3.686 a pound.
On the Chicago Board of Trade, soybean and corn prices jumped while wheat prices fell. November soybeans gained 10.25 cents to settle $9.87 a bushel, as futures edged closer to their 2004 highs above $10 a bushel. December corn added 11 cents to $3.62 a bushel.
Exports of wheat, corn and soybeans have been strong amid robust global demand for livestock feed and biofuels. The Agriculture Department on Monday reported South Korea purchased 242,000 metric tons of corn.
Wheat for December delivery tumbled 24 cents to $8.335 a bushel.
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hmmm, can you see the 100$ a barrel next summer?
can you see all the other countries that sell us stuff stop accepting the dollar?
can you see the next great depression on the horizon?
and what about our food reserves being non existant and all of the adds in the papper where all the farmers are going out of buisness selling their equipment, and being we are importing most of the food we eat , if the other countries stop accepting out curency we can see a food shortage real fast, or as it says in the bible, man will hunt man for food and that the money shale be as the dust in the streets, and the scarry part is, the US isnt mentioned in Revelations so ither we no longer exist or it is called something else when it is transformed from the US into the federated sectors of the NWO.
and what is next? the AMERO.