Oil prices again closed over $100 per barrel on Wednesday after rising to a record $101/barrel and closing at $100.74 in the expiring March contract. The price of crude oil closed above $100 for the first time earlier this week. In response, precious metals prices also reached new highs. Gold rallied above previous highs to close at $944 per ounce in New York.

In the past week, since February 13, the price of gold has risen 4.2 percent from $907 per ounce. Platinum has risen at an even steeper rate from $1,986 per ounce, up almost 7 percent to $2,121. Silver, although at a smaller percentage rate, has also been on the rise – 3.4 percent from $17.21 per ounce to $17.80.

The International Energy Agency (IEA) released a statement Wednesday in response to the record oil prices saying, “There is no single explanation for prices touching $100 again. It is however symptomatic of a tight and nervous market. We have seen a broad increase in long-term prices – reflecting concern that geopolitical issues, rising costs and access issues are playing a key role.

“In the shorter-term we have yet to see clear indications that demand is structurally weakening…With prices at this level we should be more concerned about meeting market needs than oversupply,” the statement concluded.

This has larger implications for the overall jewelry industry. According to IDEX Online analyst Ken Gassman, the slowdown in jewelry demand in the fourth quarter of 2007, including the holiday season, was in part due to high energy costs eating into consumers’ discretionary income.