Crude oil continues to move higher in European morning as USD declines against major currencies. News that leaders of the Asia Pacific Economic Cooperation forum (APEC) pledged to maintain stimulus policies boosts investors' interest to seek risky assets. Currently trading at 77.4, the benchmark contract recovers +1.2% from Friday's close at 76.35.

At the Leaders' Declaration, the APEC said that 'robust policy responses have helped to set the stage for recovery. But economic recovery is not yet on a solid footing. Our commitments to reject protectionism and keep our markets open and free have enabled trade to be part of the solution rather than the problem. We will maintain our economic stimulus policies until a durable economic recovery has clearly taken hold'.

Angolan oil minister, Jose Maria Botelho de Vasconceles, said OPEC, the organization controlling 40% of the world's oil supply, is comfortable with oil price between 75 and 78. He said oil price 'is not too high...even 80a barrel is not too high'. However, we believe crude oil's rebound above 75 will likely be capped at 80 as oil inventory remains ample which is equal to about 62 days worth of use, compared with 52-53 days on average.

Gold breaks above 1133.5 earlier today before pulling back 1125. Strength in gold and other precious metal prices was driven by renewed weakness in USD. However, recent relentless rally in gold has brought the RSI to overbought territory and a brief correction may follow.

Retail sales in the US rose +1.4% mom in October, compared with consensus of +0.4%, after contracting -0.5% in the prior month with the majority of growth coming from the auto sector. Excluding autos, sales increased +0.2%, following +0.5% growth in September.

Platinum extends rally after the report as around 50% of platinum demand was used as auto-catalyst. Currently trading at 1428, the benchmark contract soared to as high as 1434.5 after rallying +1.9% to 1388.7 last Friday.