Markets

Gold to Move Sideways in First Quarter but Upside Bias Remains Later in the Year

Although gold managed to gain +7% on annual basis in 2012, months of sideways trading below 1800 have led to speculations that its 12-year uptrend would end this year. Indeed, macroeconomic developments including potential completion of Fed's QE by the end of the year and the recovery in global economic outlook might not bold well for the yellow metal in 2013. In the near-term (1Q13), gold is expected to remain trading within a narrow range. Yet, given our assumption that global central banks would implement further accommodative monetary policies which would cause depreciation of fiat currencies and inflation fear, gold still has the chance to resume the uptrend and rise above 2000/oz before the year end.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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