LONDON, September 19, 2008 (AFP) – Oil and gold prices bounced higher this week as investors sought a safe haven while other commodities fell on fears that the financial crisis could sap global economic growth and dent demand.
However, profit-taking was in evidence Friday as world stock markets soared, driven by hefty gains in the banking sector after the US government announced plans to cordon off the debt and toxic investments at the heart of the global credit crunch.
OIL: Oil prices jumped briefly above 103 dollars per barrel before pulling back on profit-taking after an extremely volatile five days for the financial markets.
After slumping below 90 dollars at the start of the week, crude prices then jumped back into three figures.
“The market got oversold … reacting to all this bad financial news,” said Victor Shum of international energy consultancy Purvin and Gertz.
Oil, like gold, is seen as a safe haven investment in times of economic turmoil.
Prices jumped about six dollars on Wednesday after the US government’s 85-billion-dollar bailout of insurance giant AIG failed to reassure skittish investors and prompted a rush into commodities as a safe haven from the financial market stor