This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gold Bullishness Toned Down In 2013?

“You can see sharp downturns as well as upturns. But it does put in somewhat of a floor because central banks are in there buying,” Kitco quoted him as saying.

Last week's release of the December FOMC minutes suggests that the gold market will remain very focused on monetary policy this year. When it was revealed that some members of the Fed believe that monetary policies should be reeled in during 2013, the yellow metal plummeted, with the downside effects flowing into this week.

Some suggest the price decline was an overreaction.

"While we agree that the Fed will eventually unwind the monetary accommodation, it is too early to react to this possibility given current macro and political developments," said TD Securities, according to Kitco.

Noting that the economic environment is still weak and that the "very challenging negotiations" that remain to be had in Washington could result in spending cuts and thus an underperforming US economy, the firm said "this should reduce the probability that the Fed will tighten sooner, rather than later — reducing yield and lifting gold."

Gold to fall after 2013?

There are others looking for the US economy to improve this year. Among them is Goldman Sachs (NYSE:GS), which lowered its forecasts before the new year. Goldman's three-, six- and 12-month forecasts were reduced to $1,825, $1,805 and $1,800.

It was not these lower prices that created a stir and generated wrath and scrutiny from some market participants, but rather the firm's suggestion that this year could see a top in gold prices. Goldman introduced a $1,750 2014 forecast.

But other firms have made similar calls.

Credit Suisse (NYSE:CS), which had previously projected an average price of $1,840, now projects that the metal averaging $1740. In lowering its 2014 forecast from $1,750 to $1,720, this firm is also projecting that 2013 will be the year that snaps gold's streak of annual increases.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs