Gold price makes 1% gain to $1,350 an ounce

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US employment data boosts gold buying, but declines forecast in 2014.

The gold price rose 1% yesterday, taking it over US$1,350 (£834) an ounce for the first time in a month.

According to Reuters, the price increase was a result of a fresh wave of gold buying, "prompted by expectations the Federal Reserve will continue its monetary stimulus due to disappointing US jobless claims data".

Spot gold prices rose 1% to $1,345.70 an ounce during afternoon trading in the US, having earlier hit $1,351.61, its highest price since September 20.

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Global bank Goldman Sachs said in a note released to clients on October 23 that it expects gold prices to dip again in 2014, driven by improving US economic data, rising real rates and the commencement of tapering of monetary stimulus by the US Federal Reserve.

Goldman Sachs has forecast a gold price decline to $1,144 (£706) per ounce in 2014, stating that it will "likely remain volatile in a $1,250-$1,350/oz range until clarity on tapering".

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