It was a schizophrenic day for gold and silver, which could do little right during regular trading but couldn’t be stopped in the after hours action.
Gold was slightly higher in Hong Kong and early London trading on Wednesday, then rose steadily during the NYMEX session before leveling off through the Globex and finishing at $880.10/oz., up $13.50. Overnight, gold has fallen off.
OPEC President Chakib Khelil said he can see crude oil prices reaching $200 a barrel because the market is driven by the the US dollar’s slide, according to Algerian government newspaper El Moudjahid.
According to the paper: “Questioned about a possible rise which would go to $200, the minister did not rule out this eventuality, explaining that this rise is indexed from now on to the fall in the dollar or to the rise in the dollar.”
Peak Oil expert Byron King was ahead of the curve on the role of the dollar in pushing up oil prices.
It was not so long ago that oil touched $110 for the first time. Through the roof, people said. And what were people saying when oil hit $100? “Wow, it’s going through the roof!”
Another multibillion-dollar write-down hits the Street. China gets chopped in two… Shanghai Composite erases 2007 gains. Rice at another record high… U.N. warns of coming “silent famine,” food rationing hits U.S. soil. Euro near $1.60… global finance chiefs grow tired of the declining dollar.