On Tuesday, crude prices rose on better global sentiment and increased appetite for risky assets. Slightly improved China’s flash PMI for August (compared to July) and lower than expected decline in European PMI overshadowed the fall of Gaddafi’s regime.
Apart from global mood and Libya, the market will focus on US Department of Energy data today, besides other things due to fears of a “double dip” recession. Previous reports show that the total gasoline supplied (a proxy for gasoline demand) in past two months has reached levels more or less in line with longer term (2000 - 2007) average which is, on the other hand, about 150 thousand (August) or 300 thousand (July) barrels per day lower than in 2010.
Lower risk aversion triggered a sell-off of precious metals on Tuesday. Silver lost more than 4 percent, whereas gold price eased by about 3.5 percent (the largest dip since February 2010). Even though that gold is trading in sight of an all-time high in nominal terms (1911 USD per troy ounce), the price of the metal is well below its real record which is about 2400 USD/toz in the current prices.