Brent oil trading firm at $78 as ICE Dollar Index falls

Brent oil prices open the week’s trading session firm at the $78 a barrel mark amid signs that the ICE Dollar Index is heading lower.

In London, Brent crude oil futures for November 2010 delivery was trading at $78.22 a barrel, 07.45 GMT on the ICE Futures Exchange.

Interesting Times for the US Dollar

The ICE Dollar Index, which tracks the US dollar against currencies from six major US trading partners, dropped 0.1 percent to 81.290. The Dollar Index, which is the gauge of the US dollar has dropped for the past two weeks, concerning many investors about future direction of the currency.

Meanwhile, gold prices hit a record high of $1284.40 per oz as more talks of quantitative easing by the US Federal Reserve will stoke gold’s inflation hedge demand.

Rising gold prices are a good indication of the direction of Brent oil futures as both are priced in US dollars.