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 will rebound later in 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 $25.80 at $1,051.10 an ounce and March silver was last down 3.85% at $13.70 an ounce.
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