Commodities Rally on Economic Uncertainty

Gold and crude oil made broad gains in early trade Wednesday, as investors fled to commodities in an effort to avoid an uncertain global economic outlook. Spot gold is up more than 0.5%, with prices again sitting near the $1,800 an ounce mark. The metal has been a target of continuous investment in recent months, as markets sought a safe, hard asset. Crude oil is up more than 1%, with prices surpassing $87 a barrel. An industry report showing a larger-than-expected decline in U.S. gasoline supplies boosted prices, as well as an upbeat economic report in the U.S. A meeting Tuesday between French and Germany leaders over the state of the European Union and Euro did little to dispel foreign market worries. French President Nicolas Sarkozy and German Chancellor Angela Merkel denied the Euro bond idea, while championing unity in the EU. European stocks fell in early trade today, as markets largely called out the leaders' move as insufficient. Ongoing debt problems with seemingly no new solution available has led European leaders into difficult decisions. Elsewhere, natural gas, silver, and copper are all positive on the session.