Oil prices fell more than 1 percent to $63 a barrel today, Tuesday, as growing uncertainty over an economic recovery spurred investor risk aversion.  A member of U.S. President Barack Obama’s economic advisory panel said the world’s top oil consumer should plan to possibly provide a second round of stimulus funds to prop up the economy, implying that recovery is still far off.

Gold tracked back from its lows on Thursday as the dollar retreated from earlier highs, with worse-than-expected U.S. macro data and weaker European equity markets fuelling doubts a recent winning streak was sustainable.

While history has shown us that there shouldn’t be much correlation between the stock and commodity markets, the current inter-connectedness between the two at the moment is still very evident. We’re still seeing large, intra-day and intra-week price swings, most of it coming on the heels of stock market moves. 

Gold was flat to the end of Hong Kong trading, but then pushed higher from there to mid-morning in New York, peaking at nearly $775, before declining slowly to finish at $755.30, up $11.50. Overnight, gold is trending higher.

Gold was slightly higher in Hong Kong and early London trading on Wednesday, then rose steadily during the NYMEX session before leveling off through the Globex and finishing at $880.10/oz., up $13.50. Overnight, gold has fallen off.

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The base metals took a severe beating on Thursday. Copper was down from the pre-dawn hours straight through the day, only coming off its lows near the noon hour and finishing at $3.497/lb., down 6 cents.

Gold was tightly rangebound from the overseas markets straight through the NYMEX and Globex sessions on Wednesday, bouncing between $860 and $870, and finishing at $864.40, down $1.30.

Gold was very rangebound from the foreign markets through the New York session on Monday, with buyers emerging when it dropped below $880 and sellers equally present when it topped $885, and it stumbled into a finish at $882.20, down $1.80.

You can’t deny 2007 was the year of living dangerously in financial markets. So far this losing streak has continued through the first quarter—with the notable exception of soaring commodity markets!