Written by Sumit Roy  |

August 31, 2012

Week In Review: Gold & Silver Hit 4-Month Highs After Bernanke Hints At QE3, Oil Rises On Hurricane Disruption

Details

We examine the latest developments in commodity markets and the week's performance.

Commodities put in a mixed performance this week. Gold and silver continued to rally, but the other precious metals duo—platinum and palladium—fared poorly. Natural gas, oil and soybeans rose, while corn, wheat and copper fell.

The S&P 500 fell less than 1 percent in the period. The stock index is now up 11.7 percent year-to-date.

Macroeconomic Highlights

All week, investors looked ahead to Ben Bernanke's annual speech in Jackson Hole, Wyo. Hopes were high that the Fed chairman would hint at forthcoming stimulus in his remarks, but most market observers did not expect any firm commitments.

In that regard, Bernanke's speech was in line with expectations. The chairman said he could not rule out more asset purchases, alluding to a third round of quantitative easing (QE3). He added that the elevated unemployment rate was a "grave concern."

Now the focus turns to the September 13 FOMC meeting, which promises to be a contentious one. A number of Fed officials have made comments either for or against additional stimulus in recent days, and the September meeting is where a consensus will likely be reached.

Commodity Wrap