The runaway rise in gold prices is here to stay. And that is not just bad news to the U.S. economy. A sustained gold and oil boom indicates that the dollar is slipping into grave danger and the economy closer to collapse.
The European Central Bank raised interest rates by 25 basis points to 1.25 percent on Thursday, announcing its first hike since July 2008 to counter firming inflation pressures in the 17-country euro zone.
Today, after the ECB followed through and raised interest rates, Trichet explained the decision.
Brent crude futures dipped on Thursday after five days of gains, hovering around $122 a barrel on concerns that strong prices could crimp demand, with the European Central Bank lifting rates to control inflation.
The European Central Bank raised interest rates by 25 basis points to 1.25 percent on Thursday, announcing its first hike since July 2008 to counter firming inflation pressures in the 17-country euro zone.
The European Central Bank (ECB) has raised interest rates to 1.25 percent from 1.00 percent.
Gold is the world's most stable asset and the best gauge of inflation. The National Inflation Association (NIA) says this brand new breakout in the price of gold leads us to believe that the Federal Reserve is getting ready to unleash QE3 at the end of June.
Swiss inflation in March spiked to 0.6 percent month-to-month and 1 percent year-on-year, higher than the expected 0.5 percent and a reading of 0.5 percent in February.
Oil prices hit fresh peaks on Wednesday, rising to their highest since August 2008, buoyed by unrest in the Middle East and North Africa and dollar weakness ahead of an expected European Central Bank interest rate rise.
Oil prices hit fresh peaks on Wednesday, rising to highest since August 2008, buoyed by unrest in the Middle East and North Africa and dollar weakness ahead of an expected European Central Bank interest rate increase.
The price of Gold reached new record highs vs. the Dollar on Wednesday in London, breaching $1460 per ounce as world stock markets also kept rising together with commodities and higher-yielding currencies.
Oil prices held near a 2-1/2 year peak on Wednesday, supported by unrest in the Middle East and North Africa and dollar weakness ahead of an expected European Central Bank interest rate increase.
FOMC Meeting Minutes March 2011
China's central bank increased interest rates on Tuesday for the fourth time since October, raising suspicions that data next week may show inflation rose more than expected in March.
Retail sales in eurozone fell unexpectedly in February, as consumers curtailed spending amid rising prices. The volume of retail trade in the 17-nation eurozone dropped 0.1 percent in February compared with 0.2 percent increase in January, the Eurostat said on Tuesday.
A recent increase in U.S. inflation is driven primarily by rising commodity prices globally, and is unlikely to persist, Federal Reserve Chairman Ben Bernanke said on Monday.
The US dollar continued to fall in Q1 2011. It lost 2.4 percent against G10 currencies, similar to the pace of decline in Q4 2010 but more moderate compared to the 8.4 percent QE2-induced drop in Q3 2010.
Most leading economists do not expect the U.S. Federal Reserve to increase interest rates this year, despite forecasts of rising inflation and after further evidence of a recovering jobs market, a Reuters poll found on Friday.
Oil prices rose on Friday in volatile trading, as stronger-than-expected U.S. jobs data reinforced economic growth expectations but also the possibility it might trigger a pull back from loose monetary policy and strengthen the dollar.
Factories in China and India bumped up production in March as manufacturers drew in more new orders, keeping price pressures intact and making further monetary tightening necessary.
Japanese business morale improved slightly in the three months to March, the Bank of Japan's closely watched tankan survey showed, but the devastating earthquake earlier this month and a subsequent nuclear crisis are seen hurting confidence in coming months.
Microsoft says the 11,500 apps on Windows Phone 7 are all quality and the company isn't padding statistics.