AP 10/26/07
Dollar Sinks to New Low
Friday October 26, 7:37 am ET
Dollar Continues Descent With Interest-Rate Talks in High Gear
FRANKFURT, Germany (AP) -- The dollar fell to another new low against the euro Friday in midmorning trading on speculation that U.S. interest rates will be cut again.
After rising to a record $1.4375, the euro slipped back to $1.4369, higher than the $1.4319 it bought in late Thursday trading in New York
AP
Gold Surges As Oil Hits Record Over $92
Friday October 26, 11:21 am ET
By Lauren Villagran, AP Business Writer
Gold, Silver Prices Climb As Oil Reaches Record Level, U.S. Dollar Loses Ground to Euro
NEW YORK (AP) -- Gold surged to its highest level in 27 years on Friday as investors sought refuge from spiking oil prices and the dollar's decline to fresh lows.
It was a day of records in the commodities market.
Oil prices crossed $92 a barrel for the first time. The dollar slumped against the euro, which bought a peak $1.4392. Gold topped $780 an ounce as the metal edged closer to its all-time highs above $850 in 1980.
Energy prices have soared this week as tensions in the Middle East have grown and supply concerns have mounted.
The U.S. on Thursday toughened its sanctions on the Iranian military and state-owned banking systems, punishing a government it accuses of funding terrorism and developing nuclear weapons. The head of Iran's Revolutionary Guards on Friday dismissed the possibility of a U.S. military strike against Iran but said his forces would respond with "an even more decisive strike" if attacked.
The militant rhetoric from both sides has unnerved an energy market already concerned about oil supplies.
Iran is the world's fourth-largest producer of crude; the U.S. is the world's biggest consumer.
A barrel of light, sweet crude oil gained 62 cents to $91.08 a barrel on the New York Mercantile Exchange, after trading as high as $92.22 in overnight electronic trading.
Gasoline futures rose 1.22 cents to $2.248 a gallon, while heating oil futures gained 1.12 cents to $2.4196 a gallon.
Oil supply worries deepened when a U.S. government report issued on Wednesday showed large draws on inventories of crude oil, gasoline and distillates. On Thursday, OPEC's secretary general told the Wall Street Journal that the petroleum cartel was not in discussions to boost production.
Precious metals climbed sharply. December gold prices jumped $10.50 to $781.50 an ounce on the Nymex, the highest since gold surged to a peak $875 an ounce in January 1980. Investors often turn to gold during times of political instability, when the dollar loses strength or when oil prices pop -- and all three elements were in action on Friday.
