Although crude oil price recovered to 60.67 as more destruction was reported in Nigeria by the MEND, renewed selling pressure quickly erased any gains and the benchmark contract for crude oil ended Monday at 59.69, -0.3%. Others in the energy complex also dropped with natural gas sliding -3.3% to 3.26 and gasoline and heating losing -0.7% and -1.9% to 1.64 and 1.5% respectively.

Today in Asia, the black gold attempts to rise above 60 again as driven by stock rallies in Asian markets after Singapore upgraded its economic forecasts. The MSCI Asia Pacific Index climbs +2% while Singapore's Straits Times Index surges +2.2%. Singapore's government forecast the nation's GDP will contract -4 to -6% in 2009, compared with April's projection of -6 to -9%.

According to the Trade Ministry, real GDP was revised up to contraction of -12.7 qoq in 1Q09, better than preliminary estimate of -14.6%. On a year-on-year basis, the economy contracted by 9.6%. For 2Q09, GDP is expected to have declined -3.7% yoy as driven by strong biomedical manufacturing output. Despite this, the government stated that economic outlook for the rest of the year remains highly uncertain and risk is skewed to the downside.

The precious metal complex gained as USD plunged against major currencies while the dollar index plummeted -0.2% to close at 80.08. Potentials for corporate earnings to beat estimates as well as comments from US Treasury Secretary Timothy Geithner on global economic recovery helped improved risk appetite modestly. Benchmark contracts for gold and silver soared +1.1% to 922.5 and 12.79.

Speaking at a press conference after meeting UK Chancellor of the Exchequer Alistair Darling, Geithner said that there have been 'very substantial progress in the stability of the financial sector ... there is a very good chance we will see the US economy and the world economy get back to recovery, get growing again over the next few quarters.' The comment revived market sentiment and investors moved capitals from the dollar and bonds to equities. Dow Jones, Industrial Average surged +2.27% to 8332 while S&P 500 Index rose +2.5% to 901.05.

Another issue causing USD's retreat was the report showing higher-than-expected increase in Federal budget deficit. The US budget deficit for the first 9 months (fiscal year that began October 1) totaled $1.086 trillion, the first time above $ 1 trillion during the period as tax receipt reduced while government spending surged. According to the Congressional Budget Office, the deficit can reach a record of 1.841 trillion, for the entire fiscal year, compared with a deficit of $459B in the previous year. This once again spurred investors' concerns about inflation and strength of USD. Currently trading at 919.6, gold price's outlook should remain constrained by USD's movement and in the near-term correction in precious metals' prices is still likely.

Platinum and palladium prices also edged higher in tandem with gold and silver. Platinum rose +0.9% to settle at 1117.3 while platinum climbed +0.1% to 235.15.