Friday, November 6, 2009

Gold is outshining other commodities, soaring to a new high of $1,100 an ounce, as prices for copper, oil and soybeans fall.

Gold prices have been rallying in recent weeks as investors fear the government's low interest rate policy will undermine the dollar and lead to inflation, even though the Federal Reserve insists inflation will be subdued for some time.

Gold is seen as a hedge against a weak dollar and inflation.

A worse-than-expected report on October job losses is affirming for investors that the Fed will have to keep interest rates low for the foreseeable future to support the economy, which will continue to weigh on the dollar.

After briefly touching $1,100, gold is up $6.40 at $1,095.70 an ounce on the New York Mercantile Exchange.