Gold price forecast; Here's the next level after strong jobs report
(Kitco News) - Jim Wyckoff, senior analyst of Kitco News, expects more bearishness for gold and silver in the immediate future.
After a stronger than expected jobs report, with the economy adding 850,000 nonfarm jobs, higher than the initially expected 700,000, gold climbed higher along with equities.
Digging deeper into the jobs report, however, Wyckoff pointed out that several indicators, like the unemployment rate and the labor for participation rate, did not show strong improvement, which signaled to the markets that the U.S. Federal Reserve is not ready to take hawkish action anytime soon.
Long-term, gold investors should pay less attention to economic responses from the Fed, Wyckoff said.
"I really don't think [Fed action] makes a whole lot of difference for the near-term and I'll tell you why. Commodities are highly cyclical, and I think you are in a longer-term upswing cyclically, in the raw commodities sector. We've seen crude oil prices this week hit a two and a half year high, we've seen copper is not far below its 10-year high, so I think we're seeing a cyclical upswing," he said.
For Wyckoff's medium-term gold price forecast, watch the video above. Follow David Lin on Twitter: @davidlin_TV.