Yesterday's sharp sell-off in crude seems to be just that, yesterday's news. Crude futures rebounded today, bringing an end to the 2-day sell-off. Today's advance was spurred by forecasts showing that U.S. crude inventories may decline for a fourth week in a row when the Energy Department releases its weekly report tomorrow. The holiday-delayed crude inventories report is expected to show a 700,000-barrel drop in crude supplies, which some analysts believe is supporting the market for black gold. The front-month oil contract reclaimed $2.92 (or 3.2%) to close at $94.09 per barrel after marking an intraday high of $94.30.
Gold futures also rallied today, ending a 2-day losing streak for the malleable metal. December-dated gold added $15.70 (2%) to close at $814.70 an ounce. While the dollar gained ground on the yen, it slipped versus the euro as risk aversion continued to fade. Other metals followed gold's lead, with copper advancing 6% (in the wake of an earthquake in Chile, the world's largest copper producer) and silver tacking on 3%.