INFLATION: GOLD, OIL RISEBECAUSE OF WEAK DOLLAR

BLOOMBERG: Crude oil rose as the dollar dropped to the lowest level against the euro this year before OPEC’s scheduled announcement today that its members will maintain output targets . . . The U.S. currency dropped 0.7 percent to $1.4574 per euro from $1.4478 yesterday. It touched $1.4586, the weakest since Dec. 18 . . . READ MORE

ASSOCIATED PRESS: Oil prices hovered above $71 a barrel Wednesday after a weakening U.S. dollar sent crude soaring overnight and as an OPEC meeting was expected to announce no change in production levels . . . Some investors buy oil, gold and other commodities as a hedge against a weakening dollar and inflation . . . READ MORE

REUTERS: U.S. gold futures rose slightly , , , as prices held near $1,000 an ounce on the back of a sharp decline of the dollar amid growing risk appetite, boosting bullion's appeal as a currency hedge . . . READ MORE

CHINA SHIFTS FROM DOLLAR TO GOLD?
LONDON TELEGRAPH: Gold prices have been buoyed by increased demand from China. Each time prices tip, China appears to buy buying gold bullion, effectively putting a “floor” on prices. This action would appear to validate the long-held belief of many gold experts that China has fundamentally lost confidence in the US dollar, and is looking to boost gold reserves instead . . . READ MORE

HIGHER GOLD PRICES EXPECTED
BUSINESS DAY: The gold price could strengthen a further 10% to 15% from current levels, Investec Asset Management said today . . . "We believe it would not be unreasonable for gold to trade 10% to 15% higher from current levels, hitting the $1,100 to $1,150/oz range," said Investec in a note . . . The gold price marched through the $1,000 an ounce level yesterday on the back of a weaker dollar and hints of emerging hyperinflation . . . READ MORE

BLOOMBERG: Gold, trading near an 18-month high in New York, may advance to a record before the end of the year as investors seek to hedge against a weaker dollar and possible inflation, a survey showed . . . "Extremely loose fiscal and monetary policies are likely to create an inflation headache down the road," said Mark O'Byrne, managing director of broker GoldCore Ltd. in Dublin. "With the dollar's global reserve status being increasingly questioned, the dollar is likely to fall further in the coming months and lead to further diversification into gold" . . . READ MORE

TREASURY AUCTION AWAITED

MARKETWATCH: Long-term Treasurys prices fell Wednesday, pushing yields up, before the government sells $20 billion in benchmark 10-year notes, the second of three major note and bond auctions this week . . . The Treasury Department will finish the week with a sale of $12 billion in 30-year bonds on Thursday . . . READ MORE