[Tom D.]

That is certainly a lot of it. I happened to be watching CNBC the day that the Fed announced its quarter per cent rate cut. You could see the immediate drop of the dollar and the immediate rise of gold and oil prices as the announcement went on. As I recall, long term interest rates rose shortly thereafter too.

Of course there is a lot of demand pressure too, but the low dollar has a lot to do with near $100 oil.

[rebel_yell2]

Yeah, the 10 year bond rate rose from 4.39% to 4.44%.

Oh, the humanity!

Speculators are driving the oil and most commodity markets, not fundamentals. Oil was below $50 last December and very likely will be again this December. Volatility is the name of the game.

[rb22982]

Then why did the US Dollar drop 40% vs the Euro as we raised interest rates 15 straight times?