Oil recovered and was trading above $59 on Tuesday on hopes that the coldest weather of the U.S. winter would increas the demand for heating oil. U.S. crude oil was up 69 cents at $59.43 a barrel in early trade in London, while Brent crude gained 65 cents to $58.75. Gold advanced in London for a second day in a row on speculation a rebound in some commodities will raise the appeal of the metal as a hedge against inflation. Gold for immediate delivery climbed $4.40, or 0.7%, to $652.85 an ounce in early trade in London.

Currencies

The euro traded lower against the U.S. dollar on Tuesday. The 13-nation currency bought $1.2928 in morning European trading, slightly up from $1.2927 in New York late Monday. The British pound advanced to $1.9629 from $1.9596 as there are expectations that the Bank of England may consider hiking the interest rates at its meeting on Thursday. The dollar was up to 120.46 Japanese yen from 120.35 yen on Monday.