Oil, gold and the New Zealand dollar all reflected the weakening United States dollar early yesterday, with gold touching a record $US1062 ($NZ1426) in New York, Texan oil rallying to $US71.69 and the kiwi hitting more than US74.5c - for the first time in 14 months.
Gold, having broached the $US1000 mark three times since March 2008, before this month, set three new records this week, selling on the New York Comex Gold division at $US1062.70 yesterday.
Global inflation fears, the trillions poured into stabilising financial markets and rising debate on the US dollar being replaced as the world's reserve currency had all undermined the value of the greenback, British pound and Euro this week, prompting record strength by the kiwi against all three major currencies.
Craigs Investment Partners broker Peter McIntyre said oil historically tracked gold aggressively, but since July it had "steadily traded up from $US63 per barrel to trade above $US70, before hitting $US71.69 in West Texas overnight on Thursday.
"There have been over-supply issues then global demand picked up . . . the price volatility is highly correlated to news on global recovery," Mr McIntyre said.
The gold and oil price rises this week, and increasing signs of a global recovery, prompted analysts to forecast gold to trade between $US1100 and $US1350 during the year, and oil to rise to $US85 in the first quarter of 2010.
