Gold price surges to 10-week high of $1,277

After remaining under the weather for the past two months, gold price showed some real spark on Friday, January 24, 2014, when it spiked up about $15/ounce in the blink of an eye to scale $1,272.33 per ounce. In early trade this morning, at about 4am UAE time, the price of an ounce of gold rose further to a 10-week high of $1,277.71, before settling down a little.

About a month ago, gold price was reeling at $1,198.40, on December 23, 2013, and there was no dearth of analysts eager to pen a requiem for bullion’s bull-run – not without reason, though. For the first time in more than a decade, gold was ending the year weaker than where it began.

The year 2013 indeed saw gold bulls sacrificed at the altar of Wall Street, with gold price losing a gut-wrenching 28.3 per cent in the year. And towards the end of the year, when prices fell below the $1,200/oz threshold, a bunch of investment banks were quick to downgrade the yellow metal’s 2014 and 2015 forecasts.