Although crude oil recovers after the 4-day decline last week, near-term outlook is skewed to the downside as global economic recovery has showed more signs of slowing down. Currently trading at 75.7, WTI crude oil price has returned to where it was a month ago. The upside break above 80 but the lack of momentum of further rally and eventual reversal indicates crude oil will continue trading within a broad range in coming months. Gold remains firm in Asia Monday and edges higher to 1221, a level not seen since July 1, as investors find its safe-haven status appealing. Signs of rising sovereign risks in the Eurozone as shown in bond yield spreads and CDS have also increased demand for the yellow metal.
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Risk Aversion Drives Gold Higher, Crude Recovers but Downside Risk Remains
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