So many investors want to believe that last year was the death knell for the yellow metal that they’ve stop paying attention to the technical metrics responsible for driving the price down. These metrics have already started to reverse.
Last year, technical speculators – and everyday investors trading behind them – influenced gold’s price more than anything else. Notably, 2013 was the first year since their creation in 2003 that gold exchange-traded funds (ETFs) experienced a net outflow of their gold holdings. This played a pivotal role in driving down both the gold price and investor expectations for the yellow metal.