Gold continues its recent gains today while oil adds a few bucks too. A a bit of a negative feedback loop appears to be developing. Jitters over the ballooning US fiscal deficit have broken into the open in recent days with short-term emergency measures coupling with long-term infrastructure plans to heighten concerns that its all getting to be a bit much.
Gold ($827) is providing a safe-haven as the dollar loses some of that status now that short-term solvency concerns in the financial sector have been ameliorated somewhat. Oil ($45) is being boosted by talk of big supply cuts from the Saudis as well as reports fresh stockpiling of oil by the Chinese in recent days.
