Quick Take: Gold and the Jobs Report
NEW YORK (TheStreet) -- Gold is expected to be affected by the nonfarm payrolls report on Friday, Mike McGlone, director of research for ETF Securities, told TheStreet's Joe Deaux Wednesday.
While the Federal Reserve's FOMC meeting on Wednesday afternoon could potentially move the precious metals market, McGlone said that he doesn't expect the central bank to come across as the least bit hawkish. The Fed will likely try and keep things as calm as possible, while maintaining the status quo, he added.
Both silver and gold have seemed to find bottoms near $20 and $1,200 per ounce, respectively. McGlone also noted that mint sales have been particularly strong, with silver on pace to sell 50 million ounces, which would be an annual record.
He also does not expect the nonfarm payrolls report to veer very far from economists' expectations. In all, he expects precious metals to continue recovering from the steep second-quarter selloff.But what could provide a boost? McGlone said that more municipal bankruptcies like Detroit's would likely scare some investors and put them back into the metals, which were once seen as "safe haven" assets. Also, a correction in equities would help drive metals higher. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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