The price of gold is expected to hold up strongly over the course of 2014, according to a new report that includes the views of some of the sector's leading analysts.
Research compiled by the London Bullion Market Association (LBMA) found that the value of the precious metal is expected to remain at around $1,220 (£899) during this year.
With spot gold having been around a six-week high of $1,259.85 for most of this week so far, this indicates that the reputation of the commodity may be rebuilt in the next 12 months. Gold's value fell sharply during 2013, losing around a third of its value as investors shied away from it to focus on more profitable stock markets, with the Nikkei performing particularly well in 2013.
The LBMA's afternoon London "fixing" price for gold was at $1,248 yesterday (January 21st), which shows analysts are not expecting much change in the metal's value this year.
Up to $1,550
Martin Murenbeeld of Dundee Capital Markets in Australia provided one of the most optimistic predictions of the analysts who took part in the study. According to a report by the Daily Telegraph, he predicted gold will rise to as high as $1,550 over the course of the year.
"With every central bank in developed economies hoping to boost inflation, there is sufficient room to speculate that the gold market will make a turn in 2014 and end the year higher than where it started," Mr Murenbeeld said, cautioning that the US dollar will continue to have an impact on the commodity this year.
Robin Bhar of Société Générale in London is towards the other end of the scale and he claims the price of gold might drop to as low as $950, a prediction he made as he believes investors are "likely to remain big net sellers over the coming months and quarters".
Joyce Liu, an investment analyst at Phillip Futures, told Reuters earlier in the week that the Federal Open Market Committee in the US is going to have a major impact on the value of gold in 2014.
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