Oil and Gold Remain Strong Despite Portugal's Downgrade

Just a few days after investors were comforted by the ease in Greece's debt problems, Moody's remained us that sovereign crisis in the European periphery has yet to be over and is not limited to Greece by reducing the credit rating of Portuguese debts to junk. Equities waxed and waned with the Wall Street closing modestly lower and European shares ending flat. The euro slumped despite an imminent ECB rate hike. Commodities remained resilient with gold rebounding sharply to a 2-week high of 1518 before settling at 1512.7, up +2.03%, amid increased safe-haven demand. Crude oil prices also rallied +2%, partly helped by lower-than-expected price cut by Saudi Arabia.

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Oil and Gold Remain Strong Despite Portugal's Downgrade