With all the sniping and arguing in the media lately… you might be a bit confused as to whether oil or gold is the best hedge in the current climate. The answer’s quite simple… let me explain…

In the currency market, the dollar was sharply higher against the euro. Late Wednesday, the euro was trading at $1.5404 vs. $1.5525 on Tuesday.

In the energy market Tuesday, crude for June delivery roared to new intraday and closing records, finishing at $121.84/barrel, up $1.87, after an intraday peak of $122.73. June reformulated gasoline gained 6 cents, to $3.12/gallon.

Inflation finally appears to be making a comeback in Japan. Excluding food, it rose to an annual rate of 1.2% in March, a ten-year high, while consumer prices excluding food and energy rose by 0.1% year-on-year, the first positive number since 1998.

The price of rice finally started to moderate this week, with rice futures sinking for a fifth straight day. Rice has retreated 11.6% on the Chicago Board of Trade since hitting an all-time high last Thursday.

In the currency market, the dollar sank to yet another record low against the euro. Late Tuesday, the euro was trading at $1.5993 vs. $1.5913 on Monday.