The business stories that matter, by Fortune's Colin Barr
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January 8, 2008, 7:34 am

New glitter for gold

Oil isn’t the only commodity whose rise is setting off alarm bells. Just a week after crude oil touched $100 a barrel for the first time, gold set a record high at $876 an ounce, Bloomberg reports Tuesday. The surge comes as investors worry about slowing growth and rising inflation, a combination commonly termed stagflation but recently given other names as well. Also fueling the rise of oil and gold is the decline of the dollar, which continues to drop amid worries that the U.S. may slip into recession. The recession debate remains far from settled, though there are indications that even if the economy continues to grow modestly, things could get hairy.

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Colin Barr covers business and finance for Fortune.com. Previously he was an editor at TheStreet.com and author of the weekly Five Dumbest Things on Wall Street column, and an editor at Dow Jones Newswires.
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