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.
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.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.