Crude oil's rally accelerated after the US reported better-than-expected ISM manufacturing index. The contract for September delivery surged to as high as 72.2 before closing at 71.58, +3.1%. Others in the energy complex also soared with gasoline and heating oil rising +2.8% and +2.1% to 2.07 and 1.87, respectively. Natural gas jumped +10.3% to 4.03. However, it remained down -28% year-to-date.

Consolidation is seen in Asian session today with the black gold trading at 71.4. Traders are waiting for API's inventory data which can serve as a guideline of the report by the US Energy Department.

The ISM manufacturing survey rose to 48.9 in July, the highest since August 2008, from 44.8 in the prior month. Although a reading below 50 indicates recession, the higher-than-expected result (consensus: 46.5) and the 6th consecutive monthly rise suggested strong signs of improvement in the manufacturing sector. The brightest spot was the 'new orders' component which surged to 5.3, the highest since July 2007. Moreover, the 'employment' component rebounded to 45.6 from 40.7. The jump in the index indicates potential upside surprise in non-farm payrolls data to be released Friday.

Stock maker shone. The S&P 500 Index rose +1.5% to 1002.63, the first time that the index closed above 1000 since November 2008. The Dow Jones Industrial Average also gained +1.25% to settle at 9286.6.

Today in Asia, stocks extend further strength with the MSCI Asia Pacific Index adding +1%. Japans' Nikkei 225 Stock Average rises +1.06% to 10463, Australia's S&P.ASX 200 Index climbs +1.5% while South Korea's KOSPI Index adds +0.9%.

The benchmark contract for gold rose to 1-month high of 966.9 before closing at 958.5, +0.3% as investors shifted capitals away from USD. The dollar index dropped -1.1% to 77.61 yesterday. Silver also gained +2.2% to settle at 14.25.

While gold may be bid higher as weakness in USD and better market sentiment provide favorable environment for the yellow metal. The fact that both physical and investment demand are waning may hider sharp rise. According to SPDR, bullion holdings reduced -1.3% op 1073 metric last week.

On the other hand, we saw capitals flowing into silver ETFs. For instance, holdings in iShares Silver Trust, the largest silver ETF, recorded an increase of 61.2 metric tons to 8828.14 metric tons Friday.