Crude Oil, Gold to Rebound as Traders Rethink Impact US Debt Stalemate

Tuesday, 22 November 2011 02:10

Crude oil and gold are likely to rise as traders dial back fears about the fallout of the failure to strike a deal on US deficit reduction by Congressional "super-committee"


European shares and S&P 500 stock index futures are firmly in positive territory, hinting crude oil set to rise with a broad recovery in risk appetite. The rebound seems reasonable as traders digest yesterday's broad-based selloff in the wake of the failure of the "super-committee" of 12 US Congressmen to come up with a deficit reducion plan by the self-imposed Monday deadline.


Gold continues to moves in the US dollar, hinting the yellow metal is likely to recover over the nearterm as S&P 500 stock index futures point to a recovery in sentimental saps demand for benchmark currency.