The US Congress rescue plan is also affecting commodities

[barbara]

Hi, Traders. Oil prices moved higher on news that congressional leaders had reached agreement in principal on the $700 bn bail out plan formulated by the US government. Traders believe the rescue plan, is it can agrees, will be beneficial to oil prices, as it should head off an economic slow-down that would reduce demand for oil. Crude for November delivery rose $1.09 to close at $105.85 on the New York Mercantile Exchange.

Gold fell in as the prospect of a US government-led $700 billion bank-rescue package this week eased investor concern over the global credit market crisis. The yellow metal fell to 0.6 percent to $873.43 an ounce in New York trading.

Cheers!

Barbie