Salient to Investors:
Gold analysts are the most bullish in a year, while short positions held by hedge funds et al rose almost fourfold from October to December 24th. The US Mint sold 56,000 ounces of American Eagle gold coins in December, the most since June sales gained 14 percent gain in 2013.
Ross Norman at Sharps Pixley said gold is primed for a short-covering rally as physical demand is very robust.
HSBC Securities (USA) said physical buyers viewed prices near $1,200 as attractive.
Mark O’Byrne at GoldCore said purchases may rise before China’s Lunar New Year festival on January 31. The World Gold Council believed China overtook India as the biggest user in 2013.
Australia & NZ Banking said the rally may stall above $1,230 as gold’s downtrend remains in place as investors continue to sell through ETPs.
Commerzbank said gold may fall to the lowest since September 2009 based on point and figure charts and a 45 degree resistance line from April.
Goldman Sachs said on December 5 that gold will rebound to $1,300 in 3 months, before declining to $1,110 in a year.
DZ Bank said on December 20 that gold will average $1,169 in 2014, the least since 2009. Credit Suisse predicts an average of $1,180 in 2014, while Barclays predicts an average of $1,310 in 2014 and $1,190 in 2015.
The IMF predicts global economic growth will accelerate to 3.6 percent in 2014 versus 2.9 percent in 2013, as Europe rebounds from recession. Christine Lagarde at IMF on December 22 raised its outlook for the US economy.
James Paulsen at Wells Capital Mgmt said growth is possible in the developed and developing world in 2014, and predicts a good year for commodities because of synchronized global growth.
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