Oil and gold prices surge

17. February. 2010

NEW YORK: Global stocks surged on Tuesday, lifted by upbeat results from British bank Barclay's and strong New York State factory data, while the euro posted its biggest gain versus the dollar since late November on bets the currency had fallen too far over Greece's financial woes.

US and European equities rose about 1 percent, helping to rekindle risk appetite among investors.

The weak dollar pushed up commodity prices, with crude oil rising about 4 percent and gold hitting a two-week high, up almost 2 percent. Copper, a barometer for global industrial demand, jumped to its highest level in more than two weeks.

The euro's gains were limited, however, as sentiment toward the single currency remained broadly negative because of doubts that Greece's debt problems will be resolved quickly.

The euro advanced more than 1 percent against the dollar to hit a session high of $1.3775.

By early afternoon Tuesday, benchmark crude for March delivery had risen $2.87 to $77 a barrel on the New York Mercantile Exchange. In London, Brent crude was up $3.20 at $75.71 on the ICE futures exchange.

Gold prices rose as investors bought the metal to hedge against financial risk in the euro zone, and as the euro rose versus the dollar.

Spot gold prices rose $16.50 to $1,117.00 an ounce.
[arab news]