Gold for February delivery at the COMEX division of the New York Mercantile Exchange was gaining $2.70 to $1,241.30 an ounce. The gold price traded as high as $1,247.70 and as low as $1,212.50 an ounce. The spot price was increasing $8.26, or 0.67%.
"The key issue is will those underlying fundamentals such as tapering, higher interest rates, are they going to start to resurface along with better economic data?" Phil Streible, senior commodities broker at RJO Futures, asked in an interview. "I think gold prices will start to sell off again, so in the next week to two weeks, we could see it back below the $1,200 level."
- Barclays: "From both a macro and underlying fundamentals perspective, gold is likely to struggle to find supportive catalysts in 2014. ... [A] more structural shift in market dynamics, such as signs of inflation, delayed interest rate hikes or greater-than-expected demand from China, and from the official sector in particular, would be required to turn the tide for gold."
- Morgan Stanley: "We find it difficult to fathom a plausible scenario in which gold prices will move sustainably higher in 2014, given the cyclical headwinds the asset class faces."
- Marex Spectron: "So, although things look better today than they did last year, this is not the beginning of a major move for gold. We are still range bound in the same way we have been for a while. I said a couple of times last month that if gold dropped below 1200, one should buy it and that remains the case."
- Commerzbank AG: "All of this is clearly overshadowed by China's gold demand. ... In other words, gold imports may well have been only moderate in December, too. That said, it is highly probable that China will have overtaken India as the world's biggest gold consumer for the year as a whole."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV