KITCO NEWS — Looking ahead to potential gold prices next year, one technical analyst says it's important to look at how oil moves as it will lead the commodity sector in 2016. As part of Kitco News’ outlook series, Jim Wyckoff shares his forecasts and technical levels for both gold and silver in the coming year, which he expects to rebound in the second half of the year. 'We may have some more downside price pressure in the first quarter but I suspect as we move into the summer time, we will see stabilization in prices,’ he said. Wyckoff expects oil to reach $33 a barrel then move higher, which will move raw commodity prices higher as well. 'I suspect we’ll reach that area in the coming few weeks or months,’ he said. The fact that gold prices are technically oversold and sentiment among traders is extremely bearish also signals that a low is not far off, he added. 'In 2016, I think the first quarter could see gold prices challenge $1,000 an ounce,’ he said, adding that he doesn’t expect strong downside potential below that level. ‘Looking at silver, we could drop another dollar or two in the silver market before this is all set and done,’ he said, noting that the $16-17 range is needed to improve the metal’s long-term chart posture. February gold futures were last quoted down at $1,051.10 an ounce and March silver was last down 3.78% at $13.715 an ounce.
More from Video
Amid the Selling, Here's the Big Question Now
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
One Tweet Pulls the Rug Out From Under the Indexes
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
A Technical Look at the New Dow Jones Industrial Average
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
Conagra Brands Looks Tastier After Its Upgrade to Buy
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.
Biogen Bulls Get a Lift From Quant Upgrade and Strengthening Charts
Breaking down an approach to the long side of this biotech stock.