Big week ahead for commodities with Omicron Variant, Fed and OPEC+ in focus – What's next? [Video]

Nearly two years into the COVID-19 pandemic, the world once again finds itself in a "race against time" to contain a new coronavirus variant, which is spreading like wildfire across the globe.

Gold prices exploded higher on Friday after the new heavily mutated Omicron coronavirus variant sparked international travel bans and restrictions, spurring concern the fragile global economic recovery will come grinding to a halt.

What comes next will be dictated by what scientists discover about the new COVID-19 variant, including how resistant it is to vaccines and how more transmissible it is than the delta variant.

Looking ahead it’s another busy week for the markets, packed with a series of high-impact events including; Fed Chair Jerome Powell and Treasury Secretary Janet Yellen’s testimony before Senate, a critical OPEC+ output policy meeting as well as the latest U.S employment figures.

With Omicron rapidly emerging as a variant of concern, traders will be eager to hear from both Fed Reserve Chair Jerome Powell and Secretary-Treasurer Janet Yellen when they testify in Washington on Tuesday and Wednesday.

Expectations are running high that this latest round of COVID fears may encourage the Federal Reserve to pause its tapering plans or even delay the timeline for interest rate hikes.

Elsewhere this week, all eyes will be on OPEC and its allies as they meet on 2 December to decide whether or not to raise Oil output.

Many traders are convinced that the cartel could ditch plans to raise Oil output at the meeting as the demand outlook worsens on travel restrictions and a possible slowdown in global economic growth.

Also on the radar, this week will be the closely watched U.S jobs report for November, due for release on Friday.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: