Gold on Track for Worst Annual Loss in 32 Years

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Dec. 23 (Bloomberg) -- On today's "Futures In Focus," Alix Steel looks at the price of gold on Bloomberg Television's "In The Loop." (Source: Bloomberg)

If you are a long investor, this is an ugly year for you.

This is the first big loss in 32 years.

Investors are dumping gold at a record pace.

So far, investors have pulled almost $39 billion from gold funds this year which is a staggering amount.

The key level is $1200 per ounce.

This could be the last ditch support for goal.

The question is how far will it go?

We know some of the big goldbulls have been feeling the pain this year.

What is the outlook for 2014? goldman sachs is old is likely to grind lower but a lower gold prices predicted next year, about 1550 by the end of the year.

It is about the exchange traded products.

These are products that hold physical gold that investors can trade.

How much more fast money is in those products?

They restart record of about 28 tons from 2008 through this year which is 60% on annual mine production.

What kind of washout can we expect to see.

Not all investors were negative on goal.

There is still investor money into these products.

If the price continues to fall, will they be forced to sell, exacerbating the decline we have seen?

One thing that confuses me is we keep talking about the accelerating economy in the u.s. the latest figures for gdp were 4.1% and the imf said they might up raid their outlook for u.s. economic growth.

If the economy picks up, i would think inflation is likely to pick up so what could that mean for gold?

That is the bullish case.

If the economy picks up, we still have record easing from the fed even though tapering $10 billion, there's so much more on the balance sheet, which will cause inflation.

Gold bugs like inflation as a hedge to protect against a d valued currency.

It was also pointed out that the fed will keep rates low, below 6.5 rate.

There is an accommodative policy.

That could be some kind of catalyst for gold as long as it can stat a lot -- can stabilize.

The issue here is lack of physical demand.

China is importing 1000 tons this year but india imports art down 70% because of higher import taxes.

They might have the demand that they cannot import and china cannot eat up all the gold.

Thank you so much.

We will be back again "on the markets" in 30 minutes.

"market makers" is up next.

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This text has been automatically generated. It may not be 100% accurate.

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