Gold Market Ends Week on High Note Posted by James Randolph on December 06, 2013
After consecutive days of losses the gold market finally rebounded somewhat on Friday to end the week at $1234.40 per ounce. The gain of $8.70 for the day leaves gold 5.98% below its price of 30 days ago and 27.2% lower than the gold price from today’s date in 2012. In 8 of the last 12 weeks gold has suffered at least two consecutive days of losses followed by a Friday in which gold’s value increased.
Today’s gain was largely attributed to technical buying by institutional investors. After watching gold come precariously close to $1100 territory many derivatives investors needed to shore up their short positions, and that “short covering” helped gold return to the $1230-$1240 range.
Gold has been hammered repeatedly over the last couple weeks as unemployment numbers, new jobs data and the dollar index have kept the gold spot price from rising. Despite the repeated pummeling, however, gold has consistently bounced back and managed to stay above $1200 per ounce. Some analysts believe that gold could go to $1000 per ounce in 2014, but many economists have asserted that the Federal Reserve will most likely raise interest rates next year and those same economists believe that higher interest rates will not only boost the gold price but also pare some of the gains seen in U.S. stock markets over the last two years.
Derivatives investors have been playing both sides of the gold market in recent months, leaving household investors unsure about the yellow metal’s future value. While opinion about gold’s next move is split among household investors, demand for physical gold has remained high throughout 2013 as individuals buy for safety as opposed to quick profits. For regular gold market updates emailed to you scroll below and request your free gold investing guide, and don’t forget to call Certified Gold Exchange directly at 800-300-0715 with any questions about buying or selling physical gold.