Gold Jumps As Crude Oil Spikes Past $109
>>>Sorry Patron. With all the helicopters in China, there is no way Ben can keep up with the requisite poot drops. Besides, with what would he fuel them??? (I think myself clever...."all the helicopters in China." Have to use that at my next business lunch for a few laughs.)<<<
Monday April 7, 4:57 pm ET
By Stevenson Jacobs, AP Business Writer
Gold Futures Surge After Crude Oil Spikes Above $109; Other Precious Metals Also Advance
NEW YORK (AP) -- Gold futures rose sharply Monday after crude oil jumped above $109 a barrel, an inflationary sign that prompted investors to buy the metal as a safe-haven asset. Silver also rose.
Other commodities traded mixed, with copper and heating oil futures rising and agriculture products falling.
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High energy prices have added to headaches for consumers already struggling with rising food costs, dropping home values and scarce jobs. The inflationary pressure has fed buying of precious metals like gold, which is viewed by investors as a safe, alternative investment during times of rising prices and economic uncertainty.
"Higher energy prices are really about higher inflation, and the high inflation is supporting gold," said Carlos Sanchez, analyst with CPM Group in New York.
Gold for June delivery added $13.60 to settle at $926.80 an ounce on the New York Mercantile Exchange, after earlier rising as high as $933.70, its highest level in more than a week. Gold has gained 9 percent so far this year but remains well off its all-time high of $1,038.60, reached on March 17.
"You're seeing many market participants trying to catch that rally. Many missed the rally to $1,000 and they don't want to miss it again," Sanchez said.
Other precious metals also rose Monday. Silver for May delivery added 36.5 cents to settle at $18.120 an ounce on the Nymex, while May copper rose 2.5 cents to settle at $3.9795 a pound.
The rally in metals followed gains in energy futures, which rose sharply Monday as investors bet that the Federal Reserve will continue to lower interest rates, potentially weakening the dollar. A weaker dollar encourages buying of hard assets like crude oil as a hedge against inflation. A falling greenback also makes dollar-denominated commodities like oil cheaper for overseas investors.
A signal that the Organization of Petroleum Exporting Countries will hold production steady this year further supported oil prices.
Light, sweet crude for May delivery gained $2.86 to settle at $109.09 a barrel on the Nymex, its highest closing price since March 18.
Other energy futures also rose. May gasoline futures rose 2.68 cents to settle at $2.7835 a gallon, while May heating oil futures rose 9.22 cents to settle at $3.0843 a gallon.
In agriculture markets, wheat futures plunged in Chicago on expectations that farmers will plant more of the crop to profit from record-high prices.
Wheat for May delivery plummeted 53 cents to settle at $9.2125 a bushel on the Chicago Board of Trade.
Other agriculture prices also traded lower. Soybeans for May delivery lost 22 cents to $12.55 a bushel on the CBOT, while May corn dropped 8 cents to $5.90 a bushel. |
