Gold surged to yet another record high as it rose $12.00 to$1,470 per ounce this morning on the back of strong investment demand. Inflation expectations continue to rise as investors worry that Fed Chairman Bernanke will continue to pursue a crisis-driven monetary policy despite the fact that the crisis is over.
Oil, copper, gold, and silver have all seen heavy speculative flows as more investment dollars chase hard assets. Silver futures gained $0.69 to $40.24 per ounce this morning while oil futures climbed $1.41 to $111.71 per barrel.
The U.S. dollar, weaker once again Friday morning, has faced selling pressure as foreign central banks get serious about preventing a more severe inflation problem from spreading. Yesterday, the European Central Bank raised interest rates for the first time since the onset of the financial crisis despite lingering sovereign debt issues. However, despite hawkish comments from a number of Fed Presidents, Helicopter Ben has offered no indication he is ready to reign in the torrent of liquidity he has unleashed.
S&P 500 stock futures rose 6.90 to 1,335.40 ahead of the opening bell on Wall Street.