Analyst: Gold, copper will firm up, as global PMIs were upbeat - Video

This week gold has dropped to multi-week lows amid expectations of a potential December rate hike in the U.S. However, one analyst says there is little ground for concerns.

Frank Holmes, CEO of US Global Investors, considers that commodities may be at an inflection point and may give a great opportunity for investors as global PMI numbers have turned upbeat.

"Every time this has happened, gold firms up, copper firms up," he noted.

Another major news item in the gold space has been Prime Minister Modi’s implementation of the Indian Gold Monetization Scheme in the country. However, Holmes doesn’t expect it to impact the price of the metal greatly.

"I don’t think it will have a big impact because most Indians are afraid it’s a trap," he said.

Although Friday's job's data may have a positive effect on gold, for longer-term, you should watch PMI data.

"The fact that China is turning the corner, means it is the time to look for opportunity."