Precious metals are declining a bit on what is generally being regarded as a very quiet day of trading to close out the week. Yesterday was one of the quietest days of trading of the year and did not bring much in the way of economic data. With that said, however, investors the world over paid attention to an OPEC meeting that was held in order to discuss crude oil prices that have been falling for the better part of three weeks now.
As we look ahead to next week, the eyes and attention of the marketplace will be firmly fixated on Europe and the upcoming European Central Bank meeting. With a lot of talk of policy changes abounding, you can bet that most investors are expecting to hear a quantitative easing announcement come as a result of the next ECB meeting. At present, it is generally agreed upon by experts that the European economy is in need of some help if it wants to make its way out of the period of economic downturn that it is still very much in the midst of.
OPEC Meeting Consumes the Market
Due to American investors taking the day off on Thursday in order to be with friends and family, the global marketplace was much quieter than normal. Despite this, investors from all the other parts of the world were paying close attention to an OPEC meeting held in response to recently declining crude oil prices. Prior to the meeting taking place, most investors and experts seemed to be convinced that the beleaguered oil cartel would do something in order to stabilize and potentially uplift prices.
A large number of people thought that the logical plan of action for OPEC would be to either lower daily oil production quotas for member countries, or more strictly monitor the daily production of oil. To the surprise of many, OPEC decided to leave daily quotas untouched and did not really take any action as a result of yesterday’s meeting. In the wake of the OPEC meeting, crude oil prices dipped again and, thus, so too did the spot values of gold, silver, and most other raw commodities. The recently downtrodden nature of crude oil has been dragging gold and silver downwards, and that much remained the same this week.
Eyes of the World Look to ECB
With the European Central Bank the center of a lot of attention in recent months, it only makes sense that this upcoming week’s meeting will be carefully picked apart and analyzed by investors the world over. As it stands right now, a majority of global investors are convinced that the ECB is going to announce quantitative easing measures at this week’s meeting, but there is no saying whether this will definitely happen or not.
As recently as earlier this week, the Organization for Economic Cooperation and Development called upon the ECB to enact more government spending as a means of remedying the current economic situation in Europe. Because quantitative easing measures would be a significant change in policy in Europe, the whole world will be closely watching the upcoming meeting.
As we bring this interrupted, short week of trading to a close, one can only wonder what next week has in store. There will be a good number of economic reports for investors to mull over and discuss, so I would bet that next week will be action-packed and will play host to plenty of economic and geopolitical storylines.