Commodity market, this week, has been very much unpredictable amidst news of various market sentiments coming out from different corners of the world economy. Such news has led to market volatility, affecting prices of commodities such as oil and gold. On one hand, gold futures gained most in three weeks inferring to new economic stimulus by the Euro Zone and oil prices rallied amid the speculation of new economic easing in the US on the other hand.

Oil prices that saw a down trend in the opening of the week is now seeing a sharp turnaround. September crude oil futures in the New York Mercantile Exchange saw a $2 increase in the prices settling at $ 89.16 per barrel in the electronic trading from an intraday low of $86.84. The EIA report on Wednesday, had however indicated a bearish trend for oil futures  since crude oil inventories supply rose  to 2.7 million barrels compared to the last week indicating a lower demand.  It must have surprised traders to see the market go against the news. Also in the previous week when Middle East tensions were on the news, oil futures were expected to rise but it somehow went down defying the market sentiments.

Volatility this time seems to be the result of the ongoing talks about Feds next quantitative easing. Speculators are desperately waiting for the upcoming Feds meeting next week that will decide whether QE3 has any certainty. Market however seems to have already prepared for this next round of easing because of which oil prices are going upwards instead of going south.

The gold futures have also gained the most in these three weeks following speculations that European debt crises will see further stimulus packages in the form of rescue funds for the ailing economy. Alongside, the Euro also got stronger against the USD for the first time in six days. Gold futures for December rose 2 percent to settle at $1612.70 an ounce at 1:43 pm on the COMEX in New York which is the biggest gain since June 29.  Futures of silver and platinum also rose 2.4 percent and 0.9 percent respectively.