Gold is the benefactor of a surge in oil prices

Commodity-related currencies like the Canadian, Australian and New Zealand dollars are getting a lift from a spike in oil prices - this in response to the turmoil in Nigeria's oil-producing Niger Delta region. Nigerian militants attacked a major tanker terminal, and blew up a pipeline over the weekend, shutting down 20% of the country's oil exports.

European stocks advanced to a 4 ½-year high on Monday, as oil markets gained on the rise in crude prices, and with takeover speculation continuing to buoy the mining sector.

Gold is the benefactor of a surge in oil prices, as speculation abounds that inflation will gather momentum, and erode the value of assets. Gold has been mimicking oil price moves lately.

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-Peter R. Bain