Brent crude dropped below $100 a barrel for the first time since July on signs global economic growth will slow, curbing fuel use. West Texas Intermediate oil slipped to a four-month low on speculation U.S. stockpiles rose.

Brent futures touched $98 a barrel as the International Monetary Fund cut its global growth forecast and urged European policy makers to take action to bolster growth.

The global economy will expand 3.3 percent this year, less than the 3.5 percent forecast in January, after 3.2 percent growth in 2012, the Washington-based IMF said today, cutting its 2013 prediction a fourth consecutive time. The IMF sees the euro area shrinking 0.3 percent, compared with a 0.2 percent drop estimated in January, with France joining Spain and Italy in contracting.

The ZEW Center for European Economic Research in Mannheim, Germany, said its German index of investor and analyst expectations, which aims to predict economic developments six months in advance, fell to 36.3 from 48.5 in March. Economists surveyed by Bloomberg forecast a drop to 41.

Futures tumbled yesterday after data showed China’s economy expanded at a slower pace than expected last quarter.

A government report tomorrow will probably show that U.S. crude supplies gained 1.2 million barrels last week to 390.1 million, the highest level since July 1990, according to a survey.

Brent oil for June settlement fell $1.09, or 1.1 percent, to $99.54 on the London-based ICE Futures Europe exchange.

WTI crude for May delivery slipped 27 cents, or 0.3 percent, to $88.44 a barrel on the New York Mercantile Exchange. Prices fell as much as $2.65 to $86.06 earlier. 

After yesterday's aggressive sell-gold began to return loss and went into positive territory for the first time in two days. Despite the fact that until full payment of yesterday's losses still far away, at auction in the U.S. spot gold prices fluctuate at a level of $ 1,387. Now the prices are still faced with obstacles and resistance testing $ 1,400 is unlikely to significantly strengthen the metal or the stability of prices will, at least in the short term.

Investor sentiment is supported by statistical data and the U.S.. Industrial production in March, adjusted for seasonal variations increased by 0.4% compared with February. Capacity utilization rose to 78.5% from 78.3%. The cold snap in the U.S. has led to a sharp increase in production in the communal area in March, which contributed to the increase in industrial production as a whole, despite the decline in the manufacturing industry. The data were better than expected. Economists had expected industrial production to grow by 0.3% and capacity utilization was 78.4%.

Construction of homes rose last month to the highest level since the pre-crisis times, that was a sign that the housing market recovery will continue to support economic growth. The total number of housing starts in March rose by 7.0% and adjusted for seasonal variation was 1.04 million homes. The reason for this increase was a jump in construction of multi-family homes, which is a volatile component of the industry. Construction of houses for at least five families increased by about 27%, and construction of single-family homes fell by 4.8% compared to the previous month. General index was the strongest since June 2008.

The cost of the June gold futures on COMEX today rose to 1404.02 dollars per ounce.

Change % Change Last

GOLD 1,361.10 -140.30 -9.3%

OIL 88.71 -2.58 -2.8%