Commodities are a big factor in the global economy, and when commodity prices go up, precious metals tend to follow. Oil, the most important commodity, has posted mixed performance in April, but several factors look likely to drive commodity price volatility in May 2017.
Oil Prices April 2017
Factors Expected to Move Prices in May
The OPEC Meeting: OPEC is expected to extend its production cuts on crude oil when its next meeting convenes in Vienna on May 25th 2017. The key question is whether or not Iraq will follow the consensus and cut production along with Russia and the other members.
Iran's Presidential Elections: Iran will have presidential elections on the 19th – just a week before the OPEC meeting. This could influence the policy decision Iran decides to embark on. The current president of Iran, Hassan Rouhani, is expected to win. But a surprise upset could create massive uncertainty in the commodities markets and also influence the price of precious metals.
North Korea: North Korea’s belligerence is drawing the U.S and China into serious hostilities that are putting the global economy on edge. While North Korea is far away from oil production centers, it has significant influence over the two largest oil consumers.
