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WASHINGTON (AP) - Personal incomes rose in January at the fastest clip in a year, bolstered by bonus payments to high-income executives, but construction activity fell sharply as the nation’s housing industry continued to suffer through tough times.

The Commerce Department reported Thursday that personal incomes rose by 1 percent in January while consumer spending was up by 0.5 percent. The income advance was the largest since a 1.3 percent jump in January 2006 and both the income and spending gains were bigger than had been expected.

However, in less upbeat news, the government said that construction activity fell by 0.8 percent in January, double the decline that analysts had been expecting.

The weakness was led by a 1.8 percent plunge in spending on housing construction. It was the 10th consecutive fall in residential construction and a further sign of the steep slowdown in the once-booming sector, a slowdown which has depressed overall economic activity.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Home Building Plunges in Jan. Housing Construction Falls to Lowest Level in Nearly a Decade By MARTIN CRUTSINGER The Associated Press

WASHINGTON - Housing construction plunged to the lowest level in nearly a decade last month as the housing industry continued to struggle with a severe slowdown.

Meanwhile, wholesale prices dropped by 0.6 percent in January, the biggest amount in three months, providing fresh evidence that inflation pressures are easing.

Construction of new homes and apartments plunged by 14.3 percent in January, pushing total activity down to a seasonally adjusted annual rate of 1.408 million units, the Commerce Department reported Friday.

The decline pushed activity to the slowest pace since August 1997 with construction in January 37.8 percent below the pace of a year ago. The steep decline last month followed two months of construction increases which had raised hopes that perhaps the worst of the housing slump was over.

The weather was blamed for part of the setback. November and December had been unusually mild while more normal winter weather returned to much of the country in January, depressing building activity.

However, economists said the depth of the decline showed that housing was still facing major problems after a five-year boom which ended last year with falling construction and declining sales of both new and existing homes.

David Seiders, chief economist of the National Association of Home Builders, said that builders were slashing sales prices and offering other incentives such as upgraded kitchens and free decks to move homes.

“The use of incentives has not abated,” he said. “The percentage of builders trimming prices has been increasing and the use of non-price incentives is expanding as well,” he said.

The report showed that applications for new building permits, considered a good barometer of future activity, fell in January for the 11th month out of the past 12, dropping by 2.8 percent to an annual rate of 1.568 million units.

By region of the country, housing construction was down 28.5 percent in the West, 15.2 percent in the Midwest and 11.8 percent in the South. Construction starts were up only in the Northeast, a gain of 8.9 percent.

Analysts said the weakness in January construction meant that housing, which shaved more than a percentage point off economic growth in the last half of 2006, will continue to be a drag going into the new year.

On Thursday, the National Association of Realtors said that sales of existing homes fell in 40 states in the fourth quarter of 2006 and home prices dropped in 49 percent of the metropolitan areas surveyed, the widest price decline in the history of the Realtors’ survey.

Mark Zandi, chief economist at Moody’s Economy.com, said he looked for prices to continue falling.

“This market will not find a bottom until this inventory is worked off and the only way for that to occur is through further price declines,” he said.

In the inflation report, the Labor Department said that the 0.6 percent drop in its Producer Price Index was the biggest one-month decline since a 1.8 percent fall in October.

The decline last month occurred because of a 4.6 percent plunge in energy costs, reflecting lower prices for gasoline, natural gas and home heating oil.

But even outside of the volatile energy and food categories, inflation pressures were well contained, rising by a modest 0.2 percent as the price of new cars and trucks fell as automakers struggle with huge inventories of unsold cars.

Federal Reserve Chairman Ben Bernanke told Congress this week that the central bank believed inflation pressures would gradually recede over the coming two years as the economy expands at a moderate pace.

Many private economists believe the central bank is close to achieving its hoped-for soft landing in which growth slows enough to keep inflation contained without pushing the country into a recession.

On the Net:

Housing starts: http://www.census.gov/newresconst

Producer Price Index: http://www.bls/ppi

Action Insight | Written by ActionForex.com | Mar 12 07 07:19 GMT |
Forex Daily Technical Report Yen Edges Lower into European Session, UK PPI Eyed

The Japanese yen was steady against dollar and euro after mixed data from Japan but renewed selling is seen into European session. Q4 GDP was revised more than expected to a stellar 5.5% annualized growth rate, up from prior estimate of 4.9%. The biggest adjustment was made to capital expenditure which increased from 2.2% qoq to 3.1%. This confirmed that the growth is Q4 was robust. However, some concerns were on the relatively weak private consumption and that Q1’s growth may be dragged down by moderation in capital spending.

Japan’s Corporate Goods Price Index (CGPI) was flat in Feb with yoy rate slowed from 1.9% to 1.8%. The headline growth rate has been falling steadily since peaking at 3.6% last Sep as oil price moderates. The current picture suggests that inflationary pressures in Japan remains virtually non-existent.

Major focus today will be on PPI inflation data from UK. PPI input, which unexpectedly dropped -2.0% mom in Jan, is expected to rebound by 0.6% in Feb and pushed yoy rate from -1.7% to -0.9%. However, PPI output is expected to moderate slightly from 0.3% to 0.2% mom, keeping yoy rate at 2.1%. With such inflationary picture, BoE will likely continue to wait-and-see for a while before another hike later this year to bring inflation back to 2.0% by the end of 07. EUR/USD

Daily Pivots: (S1) 1.3081; (P) 1.3119; (R1) 1.3156; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

EUR/USD recovers mildly today but still, at this point, further decline cannot be ruled out as long as EUR/USD stays below 1.3159 minor resistance. Another test of 1.3070 low could still be seen. However, break above 1.3159 will suggest that the fall from 1.3185 has completed and should then bring further rise to 1.3185 cluster resistance (61.8% retracement of 1.3258 to 1.3070 at 1.3186). Break, will indicate the rise from 1.3070 has resumed for next cluster resistance of 1.3258 (78.6% retracement of 1.3364 to 1.2865 at 1.3257).

As discussed before, rise from 1.2865 has made a top at 1.3258 with bearish divergence condition in 4 hours MACD and RSI. As long as 1.3070/85 cluster support holds, subsequent price actions from 1.3258 could be developing into sideway consolidation only. However, a firm break above 1.3258 cluster resistance is needed to confirm that rise from 1.2865 has resumed for 1.3296 resistance. Otherwise, consolidation could still extend further. On the downside, sustained break of 1.3070 cluster support (50% retracement of 1.2911 to 1.3258 at 1.3085) will complete a short term head and shoulder top (ls: 1.3187, h: 1.3258, rs: 1.3185). Being a reliable reversal pattern, this will strongly suggest that the whole rise from 1.2865 has already completed. Deeper decline should be seen towards 100% projection of 1.3258 to 1.3070 from 1.3185 at 1.2997 and then 1.2939 support.

In the bigger picture, the corrective fall from 1.3364 has completed with three waves down to 1.2865. With EUR/USD staying within medium term rising channel (lower channel line at 1.2854 now), medium term up trend from 1.1639 is still in progress. Current rally is being treated as resumption of this up trend. Break of 1.3296 resistance will add more credence to this view and should push EUR/USD to a new high above 1.3364. However, sustained break of mentioned 1.3070 support will dampen this view and suggest that rebound from 1.2865 is indeed a correction to the fall from 1.3364 only. Further break of 1.2939 support will add more weight to this case and push the rising channel line back into focus again.

GBP/USD

Daily Pivots: (S1) 1.9276; (P) 1.9307; (R1) 1.9348; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

Cable edges higher as the week starts and as discussed before, further recovery is still in favor as long as it stays above 1.9261 minor support. But still, with 1.9412 resistance remains intact, short term outlook remains bearish. Below 1.9261 support will indicate recovery from 1.9183 has completed and should bring retest of this low. Break will encourage further fall towards 100% projection of 1.9913 to 1.9400 from 1.9672 at 1.9159. However, firm break of 1.9412 resistance will warn that the whole correction from 1.9913 has completed and will put 1.9672 resistance into focus.

In the bigger picture, bearish divergence conditions are being displayed in weekly RSI, daily MACD and RSI already, suggesting that the whole up trend from 1.7047 might have completed before reaching mentioned 2.0106 cluster resistance (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067). Focus is still on support zone between 23.6% retracement of 1.7047 to 1.9913 at 1.9237 and 100% projection of 1.9913 to 1.9400 from 1.9672 at 1.9159. Decisive break of this support zone will add much weight to the case that whole medium term up trend from 1.7047 has already completed and much deeper decline should be seen towards next cluster support at 1.8834 (38.2% retracement of 1.7047 to 1.9913 at 1.8818) first.

However, strong rebound from 1.9159/9237 support zone or break of 1.9672 resistance will indicate that the corrective fall from 1.9913 is merely correction to the rise from 1.8517 only and cable could make another high above 1.9913 and attempt to meeting 2.0106 cluster resistance before having a medium term reversal.

USD/CHF

Daily Pivots: (S1) 1.2279; (P) 1.2316; (R1) 1.2379; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/.

USD/CHF remains bounded in tight range today so far. At this point, intraday bias remains on the upside and rise from 1.2157 is expected to extend further towards 1.2393/94 (61.8% retracement of 1.2571 to 1.2108 at 1.2394 and 161.8% projection of 1.2108 to 1.2254 from 1.2157 at 1.2393). Touching of 1.2315 minor support will suggest an intraday top is formed and bring further consolidation. But break below 1.2255 support is needed to indicate rise from 1.2108 has completed and bring deeper decline. Otherwise, further rise is still in favor.

As discussed before, sharp rally from 1.2157 has taken out short term falling trend line (1.2550 to 1.2436). And more importantly, such rebound should have completed a short term head and shoulder bottom formation (ls: 1.2142, h: 1.2108, rs: 1.2157). Plus, breaking of previous week’s high has also completed a single week reversal. Such development, confirmed that the fall from 1.2571 has completed at 1.2108 and hence further strength should be seen in short term. However, medium term outlook is turned mixed.

In the bigger picture, sustained break of 1.2393/94 cluster resistance will indicate that rally from 1.2108 should be of impulsive nature and thus favor the case that it should represent resumption of whole rise from 1.1878 after correction from 1.2571 has completed at 1.2108. In such case, focus will be back to medium term falling trend line (1.3283 to 1.2760, now at 1.2468) and 1.2571 high. Firm break of these levels will encourage firm rally towards 1.2768 cluster resistance (61.8% of 1.3283 to 1.1878 at 1.2746).

However, one must note that weekly MACD is still negative and USD/CHF is still being kept below mentioned medium term falling trend line and 55 weeks EMA (now at 1.2437). Hence, further medium term weakness could still be seen. In particular, sharp bounce off from mentioned 1.2393/94 cluster resistance or break of 1.2255 support will argue that whole rebound from 1.2108 has completed and put focus back to this low first.

USD/JPY

Daily Pivots: (S1) 117.45; (P) 117.90; (R1) 118.74; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

After consolidating for most of Asian session, USD/JPY strengths again into European session. At this point, intraday bias remains on the upside and further rise should be seen towards 61.8% retracement of 122.17 to 155.13 at 119.48. Touching of 117.88 will turn intraday outlook consolidative first. However, further rally is still in favor as long as consolidation is contained by 116.88 resistance turned support.

In the bigger picture, our view remains unchanged even though the current rebound is stronger than we expected. Previous break of medium term rising channel support (108.99, 114.41, 117.87) indicates the whole up trend from 108.99 has completed at 122.17. Weekly MACD’s stay below signal line is still supporting this. The corrective nature of the rise from 108.99 swings favors back to the case that such medium term rally is merely part of a large scale consolidation that started at 121.38, with first leg completed at 108.99 and second leg completed at 122.17. The fall from 121.17 should then the third leg of such consolidation and deeper decline should at least be seen to below 114.02/41 support zone (61.8% retracement of 108.99 to 122.17 at 114.02) first with much possibility of further fall to retest 108.99 low.

Hence, we’ll pay close attention to short term reversal signal as USD/JPY approaches 119.48 fibo resistance. But still, clear reversal pattern needs to be formed or a break below 116.88 resistance turned support is needed to indicate the completion of rebound from 115.13 first. Otherwise, further rise cannot be ruled out.

On the upside, decisive break of 119.48 fibo resistance will argue that the price actions from 122.17 is developing into large range consolidation instead. A retest of 122.17 high could be seen in such case. But still, firm break above this resistance is needed to confirm medium term rally from 108.99 has resumed. Otherwise, medium term outlook will be neutral at best.

EUR/JPY

Daily Pivots: (S1) 154.25; (P) 154.73; (R1) 155.65; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

EUR/JPY edges further higher to 115.43 in early European session and at this point, intraday bias remains on the upside as long as EUR/JPY stays above 154.78 minor support. Further rise is still in favor towards 61.8% retracement of 159.63 to 150.75 at 156.24 first. Touching of 154.78 will turn intraday outlook consolidation and risk further pull back.

In the bigger picture, we’re treating the whole year long rise from 130.60 as resumption of the long term up trend with first wave ended at 143.60, subsequent correction ended at 137.167. The third wave up could have ended at 159.63 already. Fall from 159.63 should represent the fourth wave correction and has already met it’s target of 38.2% retracement of 137.16 to 159.63 at 151.05) and lower channel line (143.60 to 159.63, 137.16, now at 150.89). Strong rebound from the channel line is so far consistent with this view.

On the upside, firm break of 155.19 cluster resistance will add more weight to this view and EUR/JPY should make a new high before finally forming a medium term top. However, below 152.23 support again will indicate the rebound from 150.35 has likely complete and put the channel support back into focus. Sustained break of the channel will dampen this view and suggest that much deeper decline is underway towards 147.71 support first.

Forex News Digest

http://c.moreover.com/click/here.pl?r841733778
Mon, 12 Mar 2007 04:07:00 GMT from Bloomberg

http://c.moreover.com/click/here.pl?r841732674
Mon, 12 Mar 2007 04:06:00 GMT from The Australian

http://c.moreover.com/click/here.pl?r841732691
Mon, 12 Mar 2007 04:06:00 GMT from Bloomberg

http://c.moreover.com/click/here.pl?r841701939
Mon, 12 Mar 2007 03:13:00 GMT from Reuters

http://c.moreover.com/click/here.pl?r841697966
Mon, 12 Mar 2007 03:07:00 GMT from Bloomberg

http://c.moreover.com/click/here.pl?r841641252
Mon, 12 Mar 2007 01:42:00 GMT from Bloomberg

http://c.moreover.com/click/here.pl?r841627972
Mon, 12 Mar 2007 01:25:00 GMT from Reuters

http://www.actionforex.com/latest_news/latest_news/forex_news_20060323537/ Economic Indicators Update
GMT Ccy Events Actual Consensus Previous Revised
23:50 JPY Japan GDP annualised rev. Q4 5.50% 5.10% 4.80%
23:50 JPY Japan GDP rev. Q/Q Q4 1.20% 1.30% 1.20%
23:50 JPY Japan Trade balance (jpy) Jan 114B 134.5 B 1218.9 B
23:50 JPY Japan Current account (jpy) Jan 1194B 1025.0 B 1776.8 B
23:50 JPY Japan Export price index M/M Feb 0.00% N/A 1.40% 1.30%
23:50 JPY Japan Import price index M/M feb -2.20% N/A 2.80% 2.90%
23:50 JPY Japan Domestic CGPI M/M Feb 0.00% 0.00% -0.20%
23:50 JPY Japan Domestic CGPI Y/Y Feb 1.80% 1.90% 2.20%
5:00 JPY Japan Consumer confidence Feb 48.4 N/A 48.4
9:30 GBP U.K. PPI core M/M Feb 0.20% 0.20%
9:30 GBP U.K. PPI core Y/Y Feb 2.30% 2.20%
9:30 GBP U.K. PPI input M/M Feb 0.80% -2.00%
9:30 GBP U.K. PPI input Y/Y Feb -0.70% -1.70%
9:30 GBP U.K. PPI output M/M Feb 0.30% 0.30%
9:30 GBP U.K. PPI output Y/Y Feb 2.10% 2.10%
9:30 GBP U.K. DCLG hse prices Y/Y Jan 9.60% 9.90%
18:00 USD Fed budget Feb -116.0 B -119.24B

http://www.actionforex.com/general_information/forex_newsletters/forex_newsletter_200507301487/

The newly established international criminal court risks being “fatally damaged” by demands that it cancel its first ever war crimes indictment because it is an obstacle to ending Uganda’s 20-year civil war.

The dispute over a slew of charges against the leader of the Lord’s Resistance Army, Joseph Kony, who is accused of mass murder, rape, mutilations and abducting children to become soldiers, has opened a rift between African governments, which believe trials should be subordinated to local peace deals and reconciliation, and countries such as Britain which strongly back the ICC as establishing international justice.

The row also reflects differences seen at tribunals for Rwanda and Sierra Leone over whether international trials should take precedence.

The ICC launched its investigation into the LRA’s crimes at the urging of the Ugandan government and issued indictments against Mr Kony and four of his commanders in 2005. Mr Kony has demanded that the charges be dropped as a condition for a peace deal and Uganda’s president, Yoweri Museveni, wants the ICC to agree. Mr Museveni has also promised the LRA leader immunity from arrest in Uganda.

Commitments

The ICC says governments are obliged to implement the warrants if Mr Kony is on their territory and has reminded Uganda, Sudan and the Democratic Republic of Congo of their legal commitments.

Court officials are privately furious, not only because they risk seeing their historic first case reduced to farce, but because they launched the inquiry at the request of the Ugandan government, which is now accusing the ICC of neo-colonialism.

Richard Goldstone, the former chief prosecutor for the Bosnia and Rwanda tribunals which laid the ground for the ICC, said that if the charges against Mr Kony are dropped it could destroy the court.

“It would be fatally damaging to the credibility of the international court if Museveni was allowed to get away with granting amnesty. I just don’t accept that Museveni has any right to use the international criminal court like this,” he said.

“If you have a system of international justice you’ve got to follow through on it. If in some cases that’s going to make peace negotiations difficult that may be the price that has to be paid. The international community must keep a firm line and say are we going to have a better world because of the international court or not.”

Britain is dismayed at the prospect of the court, a favoured project of Tony Blair, being embarrassed. The Foreign Office yesterday said the UK is a “strong supporter of international justice and the ICC” as an imperative to tackle impunity. It said the warrants should be enforced but recognises this is “an extremely difficult issue” and it would be best if a deal could be reached that takes into account international justice and local needs. Officials were at a loss to say what that might be.

International justice has been a source of friction between African governments and the west since the establishment of the UN tribunal to try those responsible for the 1994 genocide in Rwanda.

The Rwandan government wanted to put the Hutu leadership on trial itself, saying that distant and slow-paced hearings in a foreign country would not serve justice or reconciliation. However, Rwandan authorities would not have been able to arrest the leaders now held by the UN tribunal, some of whom are in jail for life.

The UN-backed tribunal in Sierra Leone has also proved contentious. Its hybrid court of foreign and local judges has brought the former Liberian president, Charles Taylor, to justice for his role in Sierra Leone’s brutal civil war.

But the court has been strongly criticised in Sierra Leone and abroad for other trials. Peter Penfold, the former British high commissioner to Freetown, has said that prosecutions threaten a fragile peace.

Among the most sensitive is of Sam Hinga Norman, the former interior minister and leader of a militia, who is on trial for crimes against humanity, including murder and recruitment of child soldiers.

Mr Hinga Norman is a hero to many Sierra Leoneans for using his Kamajor militia to defend towns from rebels notorious for indiscriminate killings, mutilations and abduction of children. His prosecution is deeply unpopular. Mr Hinga Norman says that as a then-serving minister, and fighting to defend the legitimate government, he was taking orders from President Ahmad Tejan Kabbah, the British-backed leader who is not on trial.

In its dispute with the ICC, Uganda points to South Africa as an example of the need to subordinate justice to ending conflict. South Africa established a truth and reconciliation commission that offered amnesty in return for confession and full disclosure. Alex Boraine, the TRC’s vice-chairman, said Nelson Mandela was forced to agree to demands for an amnesty by white officials: “Because of the need to get a deeply divided society to a point that they could actually live together in the same land there had to be fairly significant compromises.”

Britain has backed the ICC in the belief that the fear of international justice will discourage the kind of crimes committed in Rwanda, Uganda and Sierra Leone in the future. But the trials to date appear to have done little to deter mass killings in Congo by Rwandan and Ugandan forces or Sudanese government complicity in the genocide of Darfur. But Mr Goldstone said international justice is having an impact.

Tribunals

“It’s impossible to say what crimes might have been committed that were prevented because of these tribunals. But I think there is circumstantial evidence that things are changing,” Mr Goldstone said. He added that international trials and truth commissions also have the same goal. “If we didn’t have a truth commission [in South Africa] there’d be at least two histories, one predominantly a white history based on an interpretation by the apartheid government which it was comfortable for white people to believe. The truth commission resulted in massive evidence coming out and really put a complete stop to the denial,” he said.

The result was similar in Rwanda even though the process was very different.

“The Rwanda tribunal put a stop to the denials of the genocide. People tend to forget that when the Rwanda tribunal began there were suggestions among many people, especially the Hutu but also many people in Europe, that this wasn’t a genocide, it was a tribal explosion that was typical of Africa. No one says that now.”

Road to justice

Case by case

Rwanda

The UN security council established an international tribunal in Tanzania to try the political and military leaders responsible for the genocide of about 800,000 Tutsis in Rwanda in 1994. The Rwandan government criticised the trials as distant and slow, saying delayed justice undermined efforts to end denial of the genocide at home.

South Africa

An agreement between the failing apartheid regime and Nelson Mandela’s African National Congress subordinated justice to confession through a truth and reconciliation commission. While the commission elicited hundreds of confessions, and granted amnesty to those who admitted crimes in full, it was criticised for failing to hold to account the white political and military leadership that bore primary responsibility for crimes against humanity.

Sierra Leone

US opposition to another international tribunal led to the creation of a hybrid court of foreign and local judges to try those responsible for the worst crimes during a brutal civil war. The court indicted the former Liberian president, Charles Taylor, for his role in the conflict and foreign pressure forced Nigeria to hand him over for trial. But the court has been accused of undermining a fragile political settlement by indicting a popular political leader whose militia played an important role in protecting towns from rebel attacks.

Uganda

The international criminal court, established as a permanent court in 2002 on the back of the temporary UN tribunals for Rwanda and Bosnia, handed down its first indictment for war crimes three years later, against the leader of Uganda’s Lord’s Resistance Army, Joseph Kony, and four commanders. They are accused of crimes such as murder, rape, enslavement and using child soldiers. The ICC investigated Mr Kony at the request of the Ugandan government, which hoped it would pressure neighbouring governments into withdrawing support for the LRA. But the Ugandan administration now wants the indictments dropped if Mr Kony signs a peace deal.

In numbers

104

states signed up around the world to the Rome statute, which set up the international criminal court. Chad has become the newest member, joining up on January 1 this year

28

African states signed up

3

security crises are being investigated by the court: Uganda, Democratic Republic of Congo, and Darfur, Sudan

1

set of arrest warrants issued over Uganda, in July 2005

cases heard before the court so far

BY REUTERS

Posted 2/27/2007

World commodities markets took a hit Tuesday after a big slump in China’s benchmark stock market index rekindled worries about growth and demand from the key buyer.

China’s main stock index had its biggest decline in a decade ahead of a session of parliament beginning next week rumored to be considering higher interest rates to cool economic growth.

The slump sent shock waves across equity and commodities markets around the world.

“If China is going to slow its economy with an austerity program, that means they buy less commodities iron ore, steel, concrete and petroleum. But it bleeds over to the other markets. China is real important to what we do here,” said Roy Huckabay, analyst with the Linn Group in Chicago.

The Reuters-Jefferies CRB Index of 19 commodities futures slipped 0.58% to 313.26, recoiling from its highest level since Dec. 6 of 315.10 reached Monday.

Copper for March delivery fell 5.05 cents to $2.8050 on the New York Mercantile Exchange’s Comex division, after hitting its highest settlement since Jan. 2 on Monday.

Gold settled only slightly lower, down $2.60 an ounce at $687.20, but then fell sharply in electronic trade after the settlement. By 3:38 p.m. in New York, gold was down $23.60 at $666.20.

NYMEX April crude settled 7 cents higher at $61.46 a barrel Tuesday, but fell more than 60 cents in electronic trade after the settlement on weakness in the stock markets.

In London, ICE April Brent crude also pared gains and settled 3 cents higher, or 0.05%, at $61.36 a barrel, moving between $60.10 and $62.18.

NYMEX March RBOB gained 3.84 cents, or 2.2%, to settle at $1.8161 a gallon, after ranging from $1.7575 to $1.827.

The peak was the highest since prices reached $1.85 on Aug. 31. Resistance charted at $1.80 gave way. Support was pegged at $1.70.

NYMEX March heating oil rose 2.31 cents, or 1.3%, to $1.7793 per gallon, trading from $1.732 to $1.7925. Resistance was at $1.79, support at $1.72.

Chicago Board of Trade March corn fell 14 1/2 cents to $4.11 per bushel after topping Monday at $4.37, the highest price since July 1996.

Hedge funds and other investors have been betting that the growing demand for ethanol will keep corn in short supply.