For gold bugs, 2014 promised so much following its long decline in 2013, which saw the precious metal lose over $500 per ounce. The first quarter of 2014 looked promising with gold recovering $300 per ounce and climbing back to test the $1,400 per ounce level – heady days.
Longer term investors in both gold and silver have no doubt become increasingly frustrated over the last few months, as first the metals gain some bullish momentum, only to see this promptly reversed with a return of bearish sentiment.
After twelve sessions of pain for gold bugs yesterday the bulls attempted to arrest the fall of gold after hitting a low $1,277.40.
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Gold (GLD, quote) continues to remain weak with yesterday’s close of 1284.50. In early trading the spot price of gold is basically flat.
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It’s been a roller coaster ride for gold over the last couple of months with the precious metal first rallying almost $200 per ounce, and then promptly reversing from the $1390 per ounce level, and giving back just over half the gain, to trade at the time of writing at $1293.20 per ounce.
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Of all the markets and instruments that I comment on and write about, none attracts more strongly differing opinions than gold.
Gold’s recent bullish momentum appears to be holding firm for the time being, and indeed February has been a positive month with only minor pullbacks and reversals denting the move higher.
