The accelerating violence between Israel and the Hamas entered its third day pushing up oil prices rose as much as $2 to nearly $40 a barrel.
US light, sweet crude was at $1.77 to $39.48 a barrel by 0122 GMT, after rising more than $2 earlier to $39.82. Oil is on track for a nearly 60 percent loss this year, the biggest annual decline since futures began trading 25 years ago.
Reuters has reported that China will take advantage of falling oil prices to boost imports and build up its fledgling oil buffer against supply shocks, an official said in a rare disclosure of energy strategies in the wake of the global economic turmoil.
Zhang Guobao, the head of the National Energy Administration, today said that China would actively push forward the construction of the second phase of state strategic oil reserves after having largely completed the first phase.
Gold rose today more than 2 per cent to its strongest since early October 2008. Gold was trading at $887.95 an ounce, up $21.15 from New York's notional close, having hit an intraday high of $889.00 on Monday. Gold is considered a safe haven buy when other markets are in turmoil. The stock markets have been on a downward tumble post the Christmas break.
Gold has outperformed stocks and most commodities this year as the recession has hit all major world markets, the worse being U.S., Japan and Europe. There has been a sharp decline in value of investments as well growth outlooks of economies.
