The latest reports coming from the COMEX division of the New York Mercantile Exchange on Monday showed that gold futures were at the highest level since Dec. 11, 2013. The gold prices rose to some extent as the most active gold contract for February delivery rose 4.2 dollars which is 0.34 percent. Finally, it settled at 1,251.1 dollars per ounce.
The U.S. which has seen better than expected GDP growth in the third quarter and expected to fare better in the fourth quarter report, faced an obstacle when the employment data came in. According to reports, due to disappointing jobs data last week, the Federal Reserve may think of not tapering with the stimulus.
On the other hand, the data on the employment influenced the gold prices which are rising, and investors’ appetite seems to be insatiable at current levels. According to the people with a keen eye on the bullion market, gold will not be too hot nor too cold in 2014. They believe that with prices averaging 1,274 dollars per ounce in the year and touching a high of 1,350 dollars and a low of 1,180 dollars will be the new norm this year.
Gold prices which were hit the most last year are expected to fare better this year and this is an indication. However, some market analysts believe that it takes more than just one disappointing jobs report to sustain the rebound of gold. According to those who have this point of view, dampening factors for gold in 2014 will be a stronger dollar and rising interest rates.
Deutsche Bank slashes 2014 and 2015 price forecasts for Commodities
Whereas gold prices are up this week so far, Deutsche Bank has slashed its 2014 and 2015 price forecasts for crude oil and other commodities. According to the bank, crude oil is now the most richly priced commodity in the world with several downside risks including an increase in non-OPEC capacity and higher OPEC spare capacity.
In its latest release, Deutsche Bank said that it is revising the prices for probity. It has also cut its WTI price forecast for 2014 by 10.1 per cent to $88.75 per barrel which is a new low. In a similar fashion, it reduced the WTI price forecast for 2015 by 10.5 per cent to $85.00 per barrel. Similarly, it reduced its average 2014 Brent price forecast by 8.2 per cent to $97.50 per barrel.
To contact the reporter of this story: Jonathan Millet at email@example.com