Bearish Gold Price News Won't Stop Our Pick from Surging 63.1% by 2018

The latest gold price news today (Thursday, June 1) shows the metal down 0.7% and trading at $1,267 per ounce. That erases most of yesterday's 0.8% gain to $1,275.

There's one important reason why gold prices are down today. The May jobs report indicated 253,000 jobs were added last month, which crushed expectations of 170,000. And that new development could impact whether or not the Federal Reserve raises interest rates again at the next FOMC meeting on June 13-14. This could consequently send the dollar higher and negatively affect gold prices.

But our even bolder prediction concerns our gold stock recommendation. We think the long-term rise in gold prices could boost shares of this mining company by as much as 63.1% over the next year.

First, here's a closer look at the gold price news dragging down gold today…

This Gold Price News Is Pulling the Metal 0.7% Lower Today

The biggest reason why the metal is down today is the surge in private-sector hiring last month.

According to the payroll processor ADP LLC, job growth in the private sector – which includes all for-profit businesses that aren't operated or owned by the government – saw a sharp rebound in May. Employers added 253,000 jobs last month – up 45.4% from a six-month low of 174,000 in April. This smashed expectations of 170,000 new jobs.

The May private jobs report is indirectly dragging gold lower today because the strong numbers all but confirm another rate hike at the conclusion of the June FOMC meeting. Strong jobs data often indicates a humming economy, which entices the Fed to raise interest rates to ensure the economy doesn't become overheated. According to the CME FedWatch Tool, the probability of a June rate hike is 95.8%.

The threat of higher interest rates usually boosts the value of the U.S. dollar, which often has a short-term negative effect on the gold price. A more valuable dollar reduces the price of dollar-denominated commodities like gold. That's because a higher dollar makes it more expensive for users of other currencies to buy gold, which effectively reduces demand.

Editor's Note: An incredibly rare gold anomaly is shaping up in the markets as we speak — one that has occurred ONLY twice in the past 20 years. And it's about to happen again. Details here…

But we're confident that the gold price will rebound through the rest of the year, thanks to strong fundamentals like supply and demand…

According to data from the World Gold Council, global gold demand reached 1,034.5 tons in the first quarter. Meanwhile, global supply clocked in at only 1,032 tons. That shortage – combined with record demand in Europe, where investors purchased eight times more gold exchange-traded funds than U.S. investors – will push gold prices higher in 2017.

And for investors interested in buying gold stocks, we've found one of the best companies to invest in for long-term returns. In fact, shares of this globally dominant gold miner are expected to soar as high as 63.1% through May 2018.

Here's our pick…

The Best Gold Stock to Buy for a 63.1% Return in 12 Months