NEW YORK (Kitco News) -- With the historic U.S. interest rate hike now in the rear-view mirror, one senior technical analyst is shifting his focus to the coming year, when he expects gold and silver prices to stabilize.
As part of Kitco News' Outlook series, Kitco's Jim Wyckoff shares his forecasts for gold and silver prices, which he expects to rebound in the later part of 2016, led mainly by a recovery in crude oil prices.
"We may have some more downside price pressure in the first quarter, but I suspect as we move into the summer 2016, we're going to see a stabilization in prices," he told Kitco News Thursday.
According to Wyckoff, oil will continue to be under pressure in the coming weeks and months, so much so that it could hit $33 a barrel.
"I suspect we will reach that area in the next few weeks or months, then I think crude oil prices will stabilize and trade sideways to higher," he said. "And when that happens, much of the raw commodities sector, including gold and silver, will do the same thing."
The crude oil market has been under significant pressure over the past year, particularly in the second half. Year-to-date, West Texas Intermediate crude oil prices have fallen almost 42%, with the biggest selloff seen after June. Nymex WTI January crude futures were last quoted down at $34.87 a barrel. This year's selloff also comes after the 2014 selloff, which saw crude fall 33% from around $85 a barrel to $60 a barrel.