World share index rises; gold near two-month high after short-covering rally
Oil traded at close to nine-month highs on Friday, on course for a second week of gains, as violence in
Buoyed by the billions of dollars the US Federal Reserve is still pumping into the global economy under its quantitative easing programme, equity markets took heart from a sanguine message this week on inflation from Fed chief
That effect was still dominant on Friday. All of
Brent oil prices slipped 0.1 per cent to
"The events unfolding in
Rising oil prices may mean improved profits for major oil companies but could impose rising costs and higher inflation on the global economy.
Speculation the Fed will look past any rise in inflation as long as growth is improving pushed stocks higher, and European markets up another 0.1-0.3 per cent on Friday.
"The goldilocks scenario of low rates and a slowly improving economy continues, with markets unmoved by continued geopolitical concerns," said
If inflation does accelerate, then holding gold is a good way to hedge against declines in the value of currencies, and bullion has been another big beneficiary of events in
"Gold's move this week has been fuelled by a rebasing of expectations after the Fed meeting, geopolitical risks, positioning and more favourable technicals," said
"We're not convinced that the rally has further longevity ... the move has a lot more to do with positioning, not just with shorts being elevated, but gross longs are also quite light."
Spot gold traded at
On currency markets, the main fallout of Wednesday's Fed meeting has been disappointment for the dollar. Some investors had been hoping for an aggressive message on the prospect of higher interest rates that would support the US currency.
In contrast, expectations the Bank of
The Norwegian crown slid on Thursday after a U-turn in policy by the central bank and dipped another 0.3 percent on Friday.
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