Gold prices to stay steady in 2014

Photo: Bullion Vault

Since then, it has enjoyed a slight rebound, with prices climbing to $1,248, according to the London Bullion Market Association.

While bargain hunters, particularly from Asia, have been taking advantage of gold's low price, though, a survey by the LBMA shows that analysts expect values to stay broadly at the same level.

Analysts predict gold prices to range between $1,067 and $1,379 this year, with the average value expected to be $1,219 per ounce, only $17 higher than the historic low recorded in December 2013.

The most optimistic outlook, from Australia's Dundee Capital Markets, forecasts a price rise as high as $1,550, although also says that prices could fall as low as $1,075.

The moderate expectations arrive as confidence in the US currency grows. Indeed, the dollar and gold traditionally move in opposite directions, with the precious metal's value growing in previous years during the economic downturn.

"There is sufficient room to speculate that the gold market will make a turn in 2014 and end the year higher than where it started," Martin Murenbeeld of Dundee Capital Markets told The Telegraph, but added: "The US dollar is likely to remain a headwind for gold in 2014."