The focus is shifted to the Eurozone. Without anything positive coming out from the pre-Eurogroup meeting, the market remained concerned about sovereign debt problems in peripheral countries and fears of contagion arose, as shown in widening in yield spreads. Oil prices tumbled with the front-month WTI contract fell to a 5-day low of 94.14 before settling at 95.15, -1.09%, while the equivalent Brent contract slipped to as low as 115.22 before closing at 117.24, down -0.92%. Both benchmarks remained under pressure in Asian session today. Gold rallied amid demand for safe-haven assets. Price, however, pulled back after failing to re-test the 1559.3 resistance as the US dollar strengthened.
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Risk Aversion due to Contagion of Debt Crisis
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