2014 recovery to extend, Gold to hit $ 1,400 an ounce later in the year: Citi Futures, RBC

MUMBAI (Scrap Monster) : Analysts at Citi Futures and RBC Wealth Management see the gold prices extending their 2014-recovery. According to them, gold is likely to hit $1,400 per ounce later in the year.

Prices settled above the 100-day moving average for a second straight session on 11 February, which is a bullish signal. Chart patterns suggest 8.5% rally in gold prices by the end of March 2014, said Sterling Smith of Citi Futures.

According to George Gero,Vice President, RBC Wealth Management, the gold prices will witness  more strength as more investors return to the market. A gradual change in sentiment is clearly visible as gold is attracting more bids, said Michael Gayed, Chief investment strategist at NY-based Pension Partners.

On the other hand, Morgan Stanley has extremely bearish stance on gold. The global financial services form predicts ‘more pain to come’ for gold investors. The bank had recently cut the 2014 gold target by 12% to $1,160. Goldman Sachs too expects the gold prices to hover around $ 1,050 per ounce during the entire-year with no notable recovery in the offing.

Gold prices which tanked 28% in 2013 have recouped 7.3% of the losses in 2014 so far. Gold ended higher at the close the US day session hitting another 3-month high.