Commodity prices fell this week, partly owing to weaker activity data from China, which weighed on industrial metals prices. In addition, a stronger dollar put some downward pressure on precious metals prices despite a further ratcheting up of tensions between the US and North Korea. Meanwhile, oil prices were relatively stable as OPEC and its allies fulfilled market expectations by extending their output cuts for another nine months, to the end of 2018.
Next week should be quiet. The main event will be November’s Employment Report for the US (Friday) which we expect to show a 200,000 gain in non-farm payrolls. This should keep the pressure on the Fed to raise rates again at its December meeting, which could weigh on the price of gold. China’s November trade data (also on Friday) should tell us more about commodity demand last month.
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