Commodities' prices continue their rally towards new high.

Oil hit yesterday a new high at 104.95 $, pushed by a likely supply cut by OPEC due to a potential oil demand reduction in the close future. We expect it to trade higher again and to move to 107 $ per barrel. A weaker dollar and speculation will manage the rise of crude prices for the next days.

Gold hit a new record level yesterday, again pushed by a weak dollar and by super inflation concerns. It is well known that Gold represents a safe harbour against an inflation storm. It seems now that more and more ships are docking there. The 1000 $ barrier will be forced soon, a weaker dollar will take the gold to a 4 digit figure by the end of the week.

Today the ECB policy makers will meet to decide on whether reduce its main lending rate or not. Everybody expects they will not make any cut, so we are ready to see the dollar at 1.55 vs Euro.

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Dollar  Euro  commodities  crude oil  gold 

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