Oil, Gold Prices Surge as Dollar Tumbles
Source: The Associated Press (11/2/07)
The commodities markets rallied Friday as the dollar skidded to a fresh low, driving investors to seek an inflation hedge in holdings of crude oil, gold and other metals.
The greenback tumbled to a low against the euro as investors looked past the Labor Department's stronger-than-expected reading on jobs growth in October. Although the total jobs added to payrolls this month topped expectations, suggesting the overall job market remains robust, investors appeared wary of the jobs erosion in the key construction, retail and manufacturing sectors.
The Labor Department said employers increased their payrolls by 166,000 versus the 85,000 new positions analysts had forecast; the unemployment rate stood pat at 4.7 percent, in line with September's level and analyst expectations. However, the jobs report is often revised, and investors appeared unconvinced by the positive news.