Gold, U.S. stocks bounce after rout; Brent below $100 a barrel

Tue Apr 16, 2013 1:41pm EDT
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By Leah Schnurr

NEW YORK (Reuters) - Brent crude fell below $100 a barrel on Tuesday for the first time in nine months as continued concerns about the global economy weighed on the outlook for demand, while gold and U.S. stocks rebounded after the recent sell-off lured buyers into the market.

The broad rout in commodities and stocks seen in recent sessions was triggered by data from China and the United States that raised worries about the strength of the global economy's recovery.

Those fears continued to weigh on oil on Tuesday, with Brent crude down $1.15 at $99.48 a barrel. U.S. crude lost 36 cents to $88.35.

"We are still seeing some weakness in price, in contrast to a number of markets that are snapping back to the upside with more vigor. That's because we still have a lot of oil," said Tim Evans, an Energy Futures Specialist at Citi Futures Perspectives in New York.

"I think what we're seeing is a shift in the oil markets' focus to its own fundamentals, rather than trying to pretend that the oil market is the equity market, or a currency market."

U.S. stocks gained on Tuesday, supported by strong earnings results from some of America's biggest companies and on expectations that the Federal Reserve will continue to provide stimulus.

Gold bounced after plunging more than 8 percent on Monday. Spot gold initially dropped further, to $1,321.35, before reversing direction to be up nearly 2 percent at $1,377.61 on Tuesday afternoon.

Gold has fallen about 20 percent so far this year after an unbroken 12 years of gains and is down some 28 percent from the record high hit in September 2011 of $1,920.30 an ounce.   Continued...

A customer looks at gold accessories at a gold store in Hangzhou, Zhejiang province April 16, 2013. REUTERS/China Daily