|
People using oil and gold as an inflation hedge, US just printing money
Published on October 9, 2009 by oilprices · No Comments“People are using crude oil and gold as an inflation hedge because the US is just printing money” said Clarence Chu, a trader at market maker Hudson Capital Energy in Singapore. “There’s definitely been a negative correlation between the dollar and oil.”
The euro fell to $1.4722 on Friday from $1.4791 the previous day, and the dollar rose to 89.18 yen from 88.37. Oil prices will likely trade near $70 until there are more positive economic signs, such as job creation, Chu said.
“There hasn’t been a strong signal that the economy is recovering,” Chu said. “There are still job losses every month.” The US unemployment rate rose to 9.8 percent in September, the highest since 1983.
In other Nymex trading, heating oil rose 1.79 cents to $1.83 a gallon. Gasoline for November delivery gained 1.43 cents to $1.77 a gallon. Natural gas for November delivery was steady at $4.96 per 1,000 cubic feet.
In London, Brent crude oil futures fell 56 cents to $69.21 on the ICE Futures exchange.