So far the yellow metal has enjoyed a bright start, with the price being up by more than 4%.
However, bearing in mind the global economy looks a bit ropey at the moment and several emerging markets currencies are free falling in value gold hasn’t exactly rallied with complete gusto.
So what’s going on with the gold price?
Is this a sign that this year any recovery will remain modest? Well for starters there has been no panic in the financial markets despite the emerging currency and recent global economy woes this suggests investor confidence remains at a stable level.
Secondly although US stocks have lowered and weaker than expected data has surfaced the US dollar remains firm.
Finally there has been a rumour that the incessant appetite for gold held by China may in fact dissipate during 2014 although there is yet to be any evidence of this.
As always the large financial banks have expressed their opinion on the matter with a series of gold price predictions. A clear gold bear is HSBC with a prediction of $1,000 by the end of the year a more realistic forecast however we feel comes from America Merrill Lynch who believe mine supply and apprehension over unexpected inflation could boost prices in the second half of 2014 leaving a year end price of $1,250 on the basis of this we feel there will be a good many entry points for the gold investor.