Prices of gold hit another record high last Friday, topping $1,470 per ounce, as investors again fretted over the weak dollar amidst inflation fears, high oil prices, and unrest in the Middle East.
Silver, another inflation hedge commodity, hit 31-year highs of $40.5 per ounce. Oil futures prices also jumped, topping $111.90 for light, sweet crude futures with May settlements, which is a 32-month high.
The U.S. dollar again struggled, weakening against a basket of currencies especially a surging euro, which fueled the rise of oil and gold prices. “Precious metal prices are currently being driven by the weak U.S. dollar and inflation risks, partly because of high oil prices,” Commerzbank analysts said in a research note to clients on Friday.