Oil breaks $100, but don't expect QE3 boost to last

Fresh stimulus action from the Federal Reserve drove commodity prices sharply higher Friday, but experts say don't expect the QE3-fueled boost to last long.

Crude oil prices briefly topped $100 a barrel for the first time since early May Friday morning, as investors grew encouraged after the Fed announced a third round of quantitative easing, or QE3, saying it would buy $40 billion of mortgage-backed bonds each month for however long it deemed necessary.

The Fed's open-ended bond purchasing program came just one week after European Central Bank president Mario Draghi said the ECB is prepared to buy euro area government bonds in the secondary market to help preserve the euro and stave off a deepening crisis in Spain and Italy.

Gold prices also rose to to a seven-month high of $1,780 an ounce before settling at $1,772.70.

Read Full Article from CNNMoney

- Posted: 2012-09-14 22:34:57

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