Gold Prices Are Hammered on Worst Trading Day in 2014

Updated from 10:15 a.m. EDT with settlement prices

NEW YORK (TheStreet) -- Gold prices on Monday posted their worst intraday performance in 2014 as a negative year-end outlook on the yellow metal from bank analysts and strong bank earnings weighed on the asset.

Gold for August delivery at the COMEX division of the New York Mercantile Exchange slumped $30.70 to settle at $1,306.70 an ounce. The gold price traded as high as $1,340.90 and as low as $1,302.20 an ounce, while the spot price was dropping $33.10.

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READ MORE: What Wall Street Is Saying Gold Prices Will Do in the Second Half of 2014

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Citigroup on Monday posted second-quarter earnings of $1.24 a share, which beat analysts estimates of $1.05 a share. The strong report boosted U.S. stocks.

"The triple-digit up move in stocks was the straw that broke the camel's back," RBC Capital Markets precious metals strategist George Gero said in a phone interview from New York. "Before the opening you saw Citi beat the earnings estimates, [causing a] big jump in the S&P 500 ... and that was enough of a catalyst to bring in sell stops."

Goldman Sachs global commodities research head Jeffrey Currie said he thinks gold, which is up more than 8% on the year, will end 2014 in negative territory.

"Gold will start moving lower once there is more confidence in the recovery, without significant inflationary concerns,” Currie told Bloomberg in an interview. Currie gave gold a price target of $1,050 an ounce -- that would be a 19.5% drop from the current level.

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