Gold price per ounce hit highs yesterday above $1400. Commodities reap the benefits as the dollar slides lower. Although the dollar strengthened yesterday, the injection from the Fed’s is expected to lower the dollar’s value overall. Commodities around the world, which are priced in dollars, are directly affected by the strength of currency. Economists report that the Fed’s announcement to purchase $600 billion in Treasuries, to boost the sluggish economy, will put pressure on the U.S. dollar. The Federal Reserve’s plans to buy Treasury bonds should continue to make positive waves in the realm of precious metals and other commodities. The Feds made the move to buy up bonds to lower interest rates and thus entice the public to spend, borrow and pay on mortgages and other loans. The dollar should continue to struggle as devaluation is in play with the large injection of the greenback into the American economy. The lower the dollar falls, the cheaper it is for foreign investors to purchase. Many economists feel that the dollar may continue its decline . This is bad news for consumers because as the dollar falls more pressure is pushed on the commodities and prices rise. Commodities, such as oil, are trading for approximately $87 a barrel but some feel that an increase to $90 or more may be on the horizon. The increased energy prices are passed on to consumers.

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