Dhaka, Bangladesh (BBN)- Crude oil hit a two-year high above US$ 87 a barrel on Friday as support from a stronger-than-expected U.S. jobs report offset a rebound by US dollar (USD).
High prices continued as concerns about the inflationary effect of the Fed’s monetary easing kept prices supported despite a bounce by USD, a weekly review report said.
Prices fell on Tuesday, pressured by USD’s rise and Wall Street's slip. Oil reached a 25-month high on Thursday as strong industrial output sent demand in China to a record and a surplus subsided in top consumer, the United States.
On the other hand, gold hit fresh records during the week. Investors bought gold on fears the Fed's bond-buying will spur inflation and weaken USD.
During the week gold set all time highs on several occasions. Silver also rose to a fresh 30-year high of US$27.73 an ounce on Tuesday. Precious metals steadied on Wednesday after futures of gold, and particularly silver, plunged although the USD's strength limited any immediate recovery.
BBN/SSR/AD-14Nov10-1:01 pm (BST)