Commodities rise on fears of inflation
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Steve Chiotakis: Today, we continue to feel the ripples of the Federal Reserve’s decision to infuse more than a trillion dollars into an anemic American economy. Policymakers say they’ll buy U.S. Treasuries and mortgage-backed securities. And some analysts cheered when the decision was announced. But some experts are worried the move would spark inflation. In response, prices for commodities are on the rise. Marketplace’s Janet Babin has more from North Carolina Public Radio.
Janet Babin: Gold, copper and wheat prices are on a general upswing this week — it’s a typical reaction to concerns about rising inflation. If the value of the dollar drops, it’s probably a good idea to hold onto something tangible. As more people stock up on raw materials stocks, their prices generally rise.
Weekly commodities prices are on course to rise up to 10 percent by the end of today. The one commodity that didn’t go up is oil. Crude prices fell a bit today in markets in Asia. The reason? Oil inventories are up. That means demand is down.
That may be what keeps all commodities prices from rising much further.
I’m Janet Babin for Marketplace.
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