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(See "Learn To Love Big Oil") Direct action to tackle the weak dollar, which is driving investors into "safe-haven" commodities like oil, looks unlikely for now.
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"Gold is a good barometer of financial and economic events," said James Steel, chief commodities analyst at HSBC. "The credit crisis has triggered a lot of safe-haven buying in commodities in general, but particularly in gold".
Since Japan's earthquake and tsunami on March 11, the prices of risky assets like stocks and commodities have plummeted while safe-haven investments like Treasuries have risen.
They are turning what was once a "commodity currency" into a safe-haven one.Julia Gillard, the prime minister, says that the Australian dollar is likely to stay high "for years to come".
You have these safe-haven purchases.
Falling commodities prices forced investors to dig into Randgold Resources, the Footsie's only gold producer, which rose 75p to 4,403p as the precious metal showed signs of regaining the safe-haven status it is historically known for.
Gold, a safe-haven investment, gained.
Investors ventured out from safe-haven bonds into riskier assets.
Back in my safe-haven.
Safe havens are the rarest commodity in the energy patch.
The falling dollar, along with declining credit and stock markets, also encourages traders to seek a safe haven in oil and other commodities.
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