Gold strengthens as the dollar weakens and over inflation concerns

Gold rose to its highest in a week as the dollar dropped against the euro, buoying demand for the metal as an alternative investment. ``The major effect on gold is coming from the weakening dollar,'' Liran Kapeluto, a senior dealer at trading-system operator Finotec Trading U.K. Ltd., said by phone from London. ``It is pushing commodities up.'' Gold is currently trading at $821.05 as of 8:40am, GMT.

Oil rises on a weak dollar and Russian tensions

Oil rose to $117 a barrel in New York on concerns that Russian crude may be disrupted after the U.S. agreed to build a missile-defense system in Poland and the conflict in Georgia has halted supplies from the Caspian Sea. The missile shield has ``real anti-Russian potential'' and will ``spur an arms race'' in Europe, Russia's Foreign Ministry said in a statement. Russia's invasion of Georgia has disrupted the export of 1.1 million barrels of crude from the Caspian Sea. U.S. gasoline supplies fell 6.2 million barrels last week, more than double analysts' predictions. Crude currently trading at $116.175 as 8:36am, GMT.