Gold 2014 Price Closes Down for Year
Bullion.Directory precious metals analysis 31 December, 2014
By Terry Kinder
Investor, Technical Analyst
The gold 2014 price closed down for the year, finishing at $1,182.90, according to Kitco. A year ago, on December 31, 2013, the yellow metal finished the day at $1,205.50 meaning gold declined 1.8% during 2014. Using figures from MarketWatch gold fell 1.5% for the year, sliding 14% from $1,379.00 an ounce earlier this year. Regardless, the gold 2014 price dip was not what some were expecting given demand from China and India, a renewed Cold War with Russia, and an economic recovery viewed with suspicion in some cirles.
Gold 2014 Price: A surging U.S. Dollar since May has exerted downward pressure on the gold price.
A resurgent U.S. Dollar, rising from $78.90 in May to over $90.00 this month proved too much for gold to overcome. This could become a recurring theme in 2015 with the U.S. Dollar Index (DXY) rising near the critical $90.35 level. Should the dollar manage to rise above $90.35 and hold above that level, then there is a decent probability it will move higher to $92.00 or so where it likely runs into resistance. Should $92.00 also be pierced, then the dollar could make a run to $96.00. Either level, $92.00 or $96.00 would be expected to exert downward price pressure on gold. Although gold and the dollar don’t always move in opposite directions, the expectation would be that a continued and sustained movement higher in the DXY would be negative for gold.
Gold 2014 Price: Dollar gravity kept the gold price from drifting too high in 2014. Image: pixabay
According to forecaster Martin Armstrong, of Armstrong Economics, the gold 2014 price failure to finish above $1,227.00 – $1,228.00 means we should expect the gold price to move lower in 2015. Depending on your reason for holding gold this may be good or bad. If you are speculating that the gold price will move higher next year you should exercise caution. The inability of gold to take and hold above $1,202.00 for any length of time leaves the very real possibility that the gold bear market in effect since 2011 has not yet ended. However, if you’re looking to accumulate and hold gold over the long-term a continued decline in the gold price could be just the opportunity you are looking for. There have been a wide range of forecasts for the gold price both this year and next. Bo Polny weighed in predicting $2,000.00 gold this year, which obviously did not happen. Not to be outdone, Harvey Organ predicted gold would surge to over $10,000.00 this month. Organ was just shy of the mark by a hair over $8,800.00. Harry Dent, who primarily uses demographic to create his forecasts, but has also integrated solar cycles into his process, believes the world is entering an era of deflation and that the gold price will slide to $700.00 per ounce or possibly much lower.
Gold 2014 Price Chart:
Gold 2014 Price: Looking at the Hurst Bands, the gold 2014 price might move a bit lower before bouncing higher.
While the gold 2014 price decline was not severe it does make you wonder how grim the economic and geopolitical picture has to get in order for gold to reassert itself and move higher. If Armstrong and Dent are to be believed, 2015 could be another difficult year for the gold price. Time will tell.
Wishing all of our Bullion Directory readers a Happy and Prosperous 2015!
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