The Financial Times reports:
Commodity markets made a flying start to 2008 with gold, oil and platinum setting records during the first trading session of the new year.
Gold led the initial advance, rising 3.3 per cent to $861.10 a troy ounce, surpassing the previous high of $850 reached in January 1980. The metal later eased back to $858.10 in late London trading.
A guy I knew once said “Too much emphasis is placed on the overall price level in the short-run. We should be more focused on relative prices.” Cannot all those price increases be explained to some extent by global growth and a flight from risk?