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Gold's Price May be Headed for the 1,220's

According to news published yesterday by Kitco, gold's average price may be 1,225 USD in 2014 - information based on a forecast by Thomson Reuters GFMS.

The forecasters have taken into account the possibility of further trimming of the Federal Reserve's bond-buying program. This will strengthen the US dollar and drag gold's price down.

The mentioned Kitco article is telling us about Thomson Reuters GFMS expectation of a gold trading range between 1,100 $ and 1,400 $ this year.

Further bearish facts behind the forecast were underlined by Thomson Reuters GFMS: Indian gold imports are picking up, mine production increased by 6 % in 2013 (it has reached a record high of 3,022 tonnes), jewelry demand rose to a 6-year high in 2013 (2,361 tonnes from 1,998 tonnes a year before).

Among the facts that might fuel the bulls: gold scrap supply dropped by 22 % (reaching a 6-year low of 1,280 tonnes), investments in ETF's have dropped (drop by 880 tonnes to the total level of 1,811 tonnes), retail bar and coin investment has increased (to 1,772 tonnes in 2013 from the 1,357 tonnes in 2012).

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