Does the weak jobs number point to a gold comeback?

Gold and silver prices surged Friday after a surprisingly weak jobs report. And some see further gains ahead for the precious metals.

The weak jobs number "paves the path of least resistance for gold higher into the end of the year," Phillip Streible of RJO Futures said Friday on CNBC's "Power Lunch."

Read MoreGold rallies on weak US jobs data; heads for best day since Jan

Only 142,000 jobs were created in September according to the nonfarm payrolls metric, versus expectations of 203,000. This was seen as reducing the chance that the Federal Reserve raises rates in 2015, given that the Fed was hoping to see strengthening economic growth.

Streible termed the weak report a "wake-up call" for the Fed.

As the chance of a 2015 hike was seen as being reduced, bond yields and the U.S. dollar declined Friday. A falling dollar and sliding bond yields are both generally positive developments for gold prices.

There are other factors that could spur gold prices, Streible adds. He points out that Russian and Chinese gold reserves are rising, while falling prices could weigh on mining activity. This shift in supply and in demand would also help gold.

Streible sees gold rising to $1,200 per troy ounce by the end of the year.

Traders at the New York Mercantile Exchange.
Adam Jeffery | CNBC
Traders at the New York Mercantile Exchange.

But Erin Gibbs, equity chief investment officer at S&P Capital IQ, conversely believes that supply is in a "glut," while demand won't rise meaningfully anytime soon.

And despite the soft report Friday, Gibbs still sees the Fed raising the key federal funds rate before the end of the year.

"Longer term, I'd still hold off," Gibbs cautioned.

After rising above $1,900 in a frenzied 2010 move, gold has been one of the worst investments over the past few years.


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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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