Gold Rises as Jobs Disappoint
NEW YORK (TheStreet) -- Gold caught a boost on Friday morning with a disappointing nonfarm payrolls report. Telling TheStreet's Joe Deaux where he sees the yellow metal going next is Larry Edelson, Editor of the Real Wealth Report.
Edelson reminded investors that gold is still trying to regain momentum after being crushed in the second quarter of 2013. However, while the metal was able regain its footing in the month of July, he said the bias over the short-term is likely to the downside.
In fact, we could be headed much lower, as he went on to say that gold might make another run at the June lows of $1,178 per ounce. If that happens, he thinks we will have finally seen a long-term bottom in gold.
However, he's more optimistic over the long-term, pointing to inflation, the Federal Reserve's inability to taper, and underlying problems in Europe as reasons for why precious metals will likely outperform down the stretch.Edelson added that he doesn't think this jobs report will set the tone for gold in the month of August. The nonfarm payrolls data usually brings volatility to gold, but the metals just haven't had enough upside momentum to constitute a breakout, he concluded.
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