The International Herald Tribune points out:
Gasoline prices, which for months lagged the big run-up in the price of
oil, are suddenly rising quickly, with some experts fearing they could
hit $4 a gallon by spring. Diesel is hitting new records daily and oil
closed at an all-time high on Tuesday of $100.88 a barrel.
Meanwhile, The Associated Press reports:
The euro climbed to a record high of $1.5057 in early European trading
on Wednesday as sentiment increased that the U.S. Federal Reserve would
continue its rate cut campaign.
The declining dollar sent people to the gold market. Gold is nearing $1,000 an ounce.
Blomberg says:
Gold rose to records in London and
New York and silver gained to a 27-year high as the dollar's all-
time low spurred demand for precious metals as a hedge against
inflation. Palladium rose to the highest since 2001.
Gold is up 15 percent this year as a U.S. housing slump and
turmoil in credit markets led the Federal Reserve to lower
interest rates when commodities were rising to records.
