(from 3news.co.nz)
As the US dollar falls to its lowest level this year against theEuro, investors have been turning to precious metals with Gold leading the pack.
Gold prices have hit their highest trading rate for 18 months but it's not all glitter and sparkle for investors.
"Investors are still very cautious although we've seen a technical drive rally here. Whilst we've breached 1,050, I think we're just going to stay here for now see how the US opens. I don't expect its going to jump above 1,030 today," says Andrey Kryuchenkov, analyst at VTB Capital.
On Tuesday Federal Reserve chief Ben Bernanke declared the US recession was "very likely" over.
It was his most emphatic declaration yet that the economic crisis is coming to an end.
But with the dollar falling to its lowest level this year against the Euro, inflation fears continue to be the biggest worry.
"Yesterday we had the very strong retail sales, producer prices all above expectation and that doesn't help the sentiment.
When investors look at it they say, well hang on a second, hello, we're in here for a very long potentially high dollar inflation - even though we're not there yet," says Kryuchenkov.
Silver and Platinum prices also rose in the wake of gold.
With growing optimism about the economy prompting investors to sell the dollar - stocks and commodities look set to shine.
Reuters
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