Commodities prices soared again this week, despite the dollar gaining slightly against the euro and British pound.
Oil traded near its highest level in two years on the news that US payrolls showed a slight jump for October.
Crude futures touched $87.22, the highest price in more than two years, and closed at $87.10 a barrel.
Precious metals bucked the stregnthening dollar trend as well. Gold rose to a record $1,394.50 and silver rose 66 cents, to $26.70 an ounce, the highest close since March 1980.
Gold may reach $1,650 in the next 12 months, analysts at Goldman Sachs said Friday.
“Markets are realizing the impact of quantitative easing is a tremendous weakening of the dollar,” said Frank McGhee, of Integrated Brokerage Services. “Ultimately, the Fed is slugging it out to make our currency as cheap as possible. That’s extremely bullish for gold.”
Commodity “prices may simply continue rising until Fed policy is normalized,” said Tom Pawlicki, an analyst at MF Global Holding.
“Eventually, gold will begin to lose out to risk markets like stocks as the prospect of easing decreases,” he added.