"We've seen a little bit of a rebound pop here on the last day of the month, but for the moment, the trend continues to be lower for commodities across the spectrum, whether it's energy products, gold, or even base metals like copper," said Eric Zuccarelli, an independent metals trader.
Gold prices set a technical bottom last week at $1,070 an ounce, which was followed by a bounce to about $1100. "However that technical level really doesn't mean anything in the larger scheme of things, and I certainly think at some point we'll be heading lower and certainly test $1000 by the end of the year," said Zuccarelli.
In addition, he said the strong dollar continues to weigh on the metal. A few weeks ago Federal Reserve Chairman Janet Yellen indicated the Fed was on track to raise rates later this year.
Zuccarelli is also bearish on oil prices, even as crude had a slight bounce on this week's report of a surprise drawdown of oil stocks in the U.S. "When you have Iraq and Saudi Arabia producing at record high levels, and combine that with the United States, the glut continues," he explained. He also cited the prospects of Iranian oil hitting the market, which would further disrupt the supply/demand equation. Oil prices may touch lows hit last winter, near $40 a barrel, he said.
"Certainly the numbers that we saw either in December or January, those lows at 40 or 42, we should take at least a test there," said Zuccarelli. "If we do get to hold that 40 area, I would not be surprised to see crude oil with a 30-number in front of it." Zuccarelli told TheStreet.