SC:Commodities: Economic nerves hit crude, gold rallies 2.6%
LONDON (SHARECAST) - Crude oil prices settled lower for the third consecutive day on Tuesday as another batch of downbeat economic data stirred up fresh nerves about the US recovery and demand for oil.
While the US President Barack Obama signed an emergency bill to increase the US ceiling, averting a default, the latest snapshot on consumer spending sparked renewed fears about the US economy.
The Commerce Department said consumer spending eased 0.2% in June, the first decline in almost two years. Personal income rose a seasonally adjusted 0.1%, the weakest increase in eight months.
Gloomy US manufacturing figures in the previous session pressured oil prices on Monday.
Crude for September delivery declined $1.10 to settle the day at $93.79 a barrel on the New York Mercantile Exchange.
Economic worries sent ICE Brent for September delivery down 35 cents at $116.46 a barrel in London.
Gold prices rallied to an all time high on Tuesday on persistent concern that the global recovery is in trouble. The yellow metal continued its dizzying ascent as investors sought its safe haven qualities.
Gold for December delivery hit another record high on Tuesday of $1,664.50 up 2.6% an ounce on the Comex division of the New York Mercantile Exchange.
