NEW YORK ( TheStreet) -- Gold prices over the past week have been teetering in positive, negative and somewhat uncertain territory. But there is confidence that the price of bullion will increase this year.One factor that is likely to support the price of the precious metal is the fact that central banks around the world have been hoarding the commodity and are reluctant to sell it. In fact, some bullion analysts expect the central banks of China, Russia and India to continue to gobble up gold as they move away from sovereign bonds and seek safer investments. A second factor likely to support the price of the yellow metal is the expected increase in global demand for base metals. There is an indirect correlation between the two types of metals, and in general as the prices of base metals increase so do those of gold. Thirdly, investor appetite for safe-haven tools is expected to continue to rise as sovereign debt issues in Europe, particularly Greece, continue to make headlines and remain a concern. Lastly, the Federal Reserve's decision to keep interest rates at or near zero is likely to result in a loss of purchasing power, which could result in the U.S. dollar declining and make gold appealing to foreign investors and painting a macroeconomic backdrop which may support gold's price. A combination of these forces and a few other have led many gold analysts to suggest that gold will hold a $1,000 floor and see upsides. With this in mind, some possible plays include:
- SPDR Gold Shares (GLD), which is the most common way to play gold through equities and gives exposure to actual physically backed bullion. GLD closed at $108.28 on Friday.
- PowerShares DB Gold (DGL), which gives exposure to gold through futures contracts. DGL closed at $39.50 on Friday.
- Market Vectors Gold Miners ETF (GDX), which includes mining companies Barrick Gold (ABX), Newmont Mining (NEM) and AngloGold Ashanti (AU), all of which are bullish on the outlook of gold in the near future and will benefit from an uptick in demand. GDX closed at $45.31 on Friday.