Ending a four-week losing streak, the gold market spiked above $1,300 on Friday after a disappointing Consumer Price Index.

This is the fifth month in a row that inflation has remained at the low end of this year's range, falling from a high of 2.3% seen in January.

Bill Baruch, president of Blue Line Futures said that the latest inflation data is good for gold because it creates some doubt around the Federal Reserve's monetary policy action. While a December rate hike is seen as a sure thing, the latest inflation data adds some uncertainty that the Fed will be able to aggressively hike interest rates in 2018.

"I believe we will see Gold higher next week," Baruch said. "Yes, the Fed will be able to continue to tighten but the path is priced in and the growth landscape that eludes to this path is not speeding up."

As for a longer term forecast, Baruch said that he would not be surprised if gold hits $1,400 by early next year.

December gold futures last traded at $1,303.20 an ounce, up more than 2% since last Friday. At the same time, silver is seeing its second week of gains, last trading at $17.38 an ounce, up almost 3% from last week.


Watch more from Kitco News:

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.