Gold and silver consolidated this week, following an explosive $30 rise for gold ($1.20 for silver) last Friday. In precious metals markets there has been a change in sentiment from extreme bearishness to “don’t know.”
Financial stability, economic growth and jobs creation are likely to be top of the agenda at the G20 summit in Moscow and any commitment to closer global coordination over economic and monetary policies could prove bullish for commodity and risk currencies.
Despite the better than expected U.S. weekly jobless claims at 334,000, the gold price still ended higher on Thursday. As the path of the QE remains uncertain, volatility in the equities, dollar, bonds, and commodities prices will continue.
OPEC is showing more concern about the rapid drop in oil prices. While a call from the hawks for a meeting is not unusual, it seems that OPEC special meeting or not will more than likely reign in production unless prices rebound dramatically.