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[video] Quick Take: Gold Regains $1,200 on First 2014 Trading Day

NEW YORK (TheStreet) -- Gold prices had a disastrous 2013, but 2014 started off with the yellow metal up $20 per ounce and closing above the key $1,200 level. TheStreet's Joe Deaux spoke to Miguel Perez-Santalla, vice president of business development at BullionVault. 

Some market argue jobless claims came in lower than expected, which may indicate a negative sign of things to come and prompting gold to rally on Thursday, Perez-Santalla said. However, he disagrees and thinks gold's move higher is because prices are cheap. Investors saw gold below $1,200 and decided to snatch it up while they could, he said.

Deaux asked the question many investors have likely been wondering: How long will the $1,200 level last as support? 

According to Perez-Santalla, it should hold for "quite a long time." He said it costs miners roughly $1,100 per ounce to mine gold, meaning there is a reasonable $100 premium built into current gold prices. For this reason, he believes $1,200 will continue to hold as support. 

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Although the Federal Reserve has begun tapering its asset purchasing program, there is still a sizable quantitative easing program instilled in the Fed's current monetary policy. 

Coupled with the uncertainties regarding the Affordable Care Act's effect on the U.S. economy, Perez-Santalla concluded that investors should continue to view gold as a "safe haven" asset. 

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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