This Day On The Street
Continue to site
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

Gold Outlook: Will Gold Bounce Back in 2014?

Gold Outlook: Will Gold Bounce Back in 2014?2013 will go down as the annus horribilis for gold, to quote a famous monarch who coined the term as a pithy description for a series of misadventures that befell the British royal family in 1992.

Similarly, gold, as an investment class, was hit by a number of factors this year that saw the precious metal tumble from its perch as a safe, reliable asset that for the past several years has been an attractive alternative to depreciating fiat currencies, a hedge against inflation, and a store of wealth — the latter a sort of insurance policy taken out against future economic calamity.

At the time of this writing, gold had suffered another significant drop in a year that has seen it plummet more than 25 percent in value; or 37 percent lower than gold's record high of $1,923.70 an ounce reached in September 2011.

On the day after the U.S. Federal Reserve's announcement that it will scale back quantitative easing, or QE, by $10 billion a month starting in January, gold slipped below the $1,200 an ounce mark for the first time in 6 months, with the spot price trading around $1,196 in New York.

The Fed for months has been musing about when to scale back its quantitative easing program, the $85 billion a month stimulus package that since 2008 has pumped some $4 trillion into the U.S. economy in order to keep interest rates low and prevent the country from falling back into recession. But an improved economic picture in the United States, particularly on the jobs front, has lessened the need for stimulus and increased pressure on the central bank to taper its monthly bond purchases, which due to the program's inflationary nature, has been exceedingly bullish for gold. Since the program started in 2008, the bullion price has more than doubled, and only in the past 12 months has it significantly slipped.

Indeed, there will be no Santa Claus rally for gold this year, and the metal's 12-year bull run has almost certainly come to an end. Or has it? In this 2014 outlook, Gold Investing News takes a look at the main factors that led to gold's demise in 2013 and then offers up some predictions, with some help from the experts, on what 2014 has in store for the precious metal.

1 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs