13th May 2017

Gold finished higher on Friday and ended the week little changed at just under $1230/ounce. There were fractional changes in the rest of the group, but silver and platinum both ended higher on the week, although palladium finished at just about flat. In other markets, oil settled higher on Friday, but trading conditions remain quiet as investors begin moving towards the sidelines in anticipation of OPEC’s May 25th meeting. The oil market remains caught between countervailing forces; on the one hand, OPEC is reducing supply, but not fast or consistently enough, while US production is making impressive gains, in effect offsetting the impact of these reductions. As further evidence of this, Reuters cited Baker Hughes data on Friday showing that US drillers added to the oil rig count for a 17th straight week.