Gold continues to strongly remain a winner as it gained today in its price as oil reached a new record and the dollar continued to weaken.
The yellow shiny metal saw a boost in its price as the fear of inflation grew in the minds of the investors as soon as the oil prices increased. This enlarged the demand and investments on the safe-heaven asset, in other words on gold, being and remaining as a hedge against the recent inflation. And of course beside the support given by the raising oil, the dollar that became weaker played a major role as well in the incline of gold prices.
Oil prices made a new record reaching $135.04 a barrel which helped gold prices to stay high and rise, always due to basic demand and supply factors; as investors worry about the insufficient crude supply and rising global demand that is constantly climbing besides the fact that U.S stockpiles dropped, which wasn't expected. Plus these inflationary pressures made oil more appealing to investors whom are looking for a headge against the falling dollar.
The US dollar continues on falling having these inflationary tensions. Moreover, these higher crude prices are actually speeding up the inflation supporting strongly the deep swap of investments from the green currency to the safe-heaven gold and to oil, the hard black commoditie, both appealing with their high returns. This will of course slow down the economic growth in the US as the Feds yesterday had to lower their growth forecast for the economy throughout this year and warn about the upside risks of price stability that remain.