Crude oil recovered, gaining more than 4% on Jan. 28, amid concern that unrest in Egypt could spread to other regional producers. Prices recouped losses sustained earlier last week after Saudi Arabian Oil Minister Ali al-Naimi said OPEC members may boost supplies as demand rises.
The commodity had slipped as much as 2% Jan. 24 after Saudi Arabia's al-Naimi said the Organization of Petroleum Exporting Countries would "meet any increase in oil demand to maintain the supply-demand balance."
As for the week ahead, traders' attention should be devoted to all developments from the Middle East, as this is likely to continue to play a leading role in commodities trading. Traders should take under consideration that as long as the unrest in the region remain, crude prices might be further supported.
Gold fell on Monday after posting its largest daily gain in eight weeks on Friday and while the market did encounter some safe-haven buying on the back of the protests in Egypt, this was expected to be temporary.
Gold is set for its worst monthly performance since December 2009, driven down by the improving tone of some key U.S. economic data, growing investor confidence and a near-record decline in holdings of metal in exchange-traded funds.
Scenes in Egypt, where protesters intensified their campaign to force President Hosni Mubarak to quit, have encouraged some safe-haven buying of gold, although this support is unlikely to last long.