Commodities Overview

OIL:

Oil futures were little changed after dropping for a fifth day yesterday in the longest losing streak since August. March delivery Crude fell 1.3 percent to $96.36, the lowest since Dec. 19. Prices are down 3.1% this week, the most since the week ended Dec. 16 on the back of rising Inventories and expected Jobs data.

Wednesday saw the release of the Crude Oil Inventories, rising to 4.2M v 3.2M expected and 3.6M last week. Today see the release of the U.S. Non-Farm Payrolls report, it’s expected to come in at 150k, down from Decembers 200k. This expected drop in jobs growth coupled with the rise in Inventories has kept Crude Oil prices under pressure.

GOLD:

Gold has been on the rise for the past 5 weeks, its longest rally since August, as mixed U.S. economic data and the European debt crisis has spurred demand once more for this safe haven. Gold is currently trading at $1758 an ounce, its highest since early December.

As long as concerns remain about the situation in Europe and no comprehensive solution is offered along with uncertainty over the health of the US economy Gold should remain in demand. US data has shown signs of an improving economy of late but consumer confidence and house price still remain subdued.