Gold edges back above $1,200 as dollar retreats
NEW YORK (MarketWatch) — Gold futures gained ground Monday, closing back above the $1,200-an-ounce level as the dollar rally took a respite.
Gold for December delivery GCZ4, +1.20% rose $14.40 an ounce, or 1.2%, to close at $1,207.30 an ounce. On Friday, gold turned negative for 2014, as an encouraging jobs report weighed on haven demand. It was the first time this year that a most-active gold futures contract closed under $1,200. Monday’s rebound put the yellow metal back in positive territory for 2014 with a 0.1% year-to-date rise.
A rallying U.S. dollar has whacked gold and other dollar-priced commodities in the past three months, but analysts at Sterne Agee think the greenback’s gains are overdone, and they sound upbeat on gold looking into next year.
In a note on Monday, the analysts said they “continue to expect prices to trend higher as global demand remains firm, liquidity remains ample and the dollar appears overbought.” Sterne Agee expects gold prices to average $1,400 an ounce in 2015 and $1,450 in 2016.