Euro Strikes New High Against Dollar

Gold rises $16.20 to $948.30 an ounce.
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The euro climbed to another record high Wednesday after new inflation figures in Europe put a serious dent in the chance of a near-term rate cut in the Eurozone.

Europe's common currency was recently trading for $1.5956, just below the all-time high of around $1.596 reached earlier in the session. That was up from $1.5787 late Tuesday.

The advance came after March inflation figures for the Eurozone were revised higher, bringing the government's year-on-year estimate of price inflation to 3.6%.

According to Ashraf Laidi, chief foreign-exchange analyst at CMC Markets in New York, the numbers validate the European Central Bank's "relentless hawkish rhetoric" and further dampens the odds of a reduction in rates anytime soon.

The ECB has for some time placed greater emphasis on fighting consumer price inflation than on economic growth, the reverse of the approach by the

Federal Reserve

. The result has been a growing dissatisfaction from investors with holding the low-yielding U.S. currency relative to owning higher-yielding euros.

Elsewhere in the currency markets, a dollar was buying 101.16 Japanese yen, down from 101.66 yen previously. The British pound was selling for $1.9712, up from $1.9614.

The

CurrencyShares Euro Trust

(FXE) - Get Report

was up 1.3% recently, while the

CurrencyShares Japanese Yen Trust

(FXY) - Get Report

was losing 0.1%. The

CurrencyShares British Pound Sterling

(FXB) - Get Report

was tacking on 0.6%.

In the metals markets, bullion prices jumped on the back of the struggling greenback.

Benchmark bullion futures closed higher by $16.20 at $948.30 an ounce on the Comex division of the New York Mercantile Exchange. Gold reached a record high of $1,024 March 17 and then pulled back, but lately it has been trending upward again.

"There is still somewhat of a disconnect in the fact that oil, as well as the dollar, is scaling new highs and lows respectively while bullion is stuck

well below its own recent record," writes Jon Nadler, gold analyst at Montreal-based bullion dealer Kitco in a recent research report.

The

iShares Comex Gold Trust

(IAU) - Get Report

, which owns bars of gold bullion, was rallying 1.7%.

Among companies, shares of

Kinross Gold

(KGC) - Get Report

were up over 6%, while

Harmony Gold

(HMY) - Get Report

was ahead by more than 8%.

Yamana Gold

(AUY) - Get Report

was gaining better than 6%.