Will Gold Rally in 2014?

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Jan. 15 (Bloomberg) -- Bloomberg's Alix Steel and Bloomberg Industries’ Kenneth Hoffman put futures in focus with a look at gold in "On The Markets" on Bloomberg Television's "In The Loop."

Expect that to continue?

What is interesting about gold, here is a metal that was up 12 years in a row.

Gold is down last year and every analyst is just killing gold.

One major firm came out and said it is a slamdunk short.

Low and behold, old started heading up in early 2014. like i mentioned, gold is down today.

What part of this is index rebalancing, where basically indices are forced to buy gold, but that is just a short-term phenomenon?

It could be a short-term phenomenon, at one of the things we have talked about the past year, is part of the thing rechecking the downside of gold is the cost of producing gold.

Yesterday you saw a pretty big miner, colossus, file for bankruptcy.

The stock is under -- there is no gold there.

A lot of the big old companies all come back, production, and that keeps the downside limited.

The bears and gold are saying the fed is tapering, that is what -- why we want to short gold.

The fed is saying at this price there will be a lot less gold reduced input into the world marketplace.

We also saw one company make a hostile bid for another.

Is 1235 really the level where miners get scared?

In 2008, we saw a seven percent reduction in gold production.

Its cash costs were lower than goldcorp.

They have been trying the -- to buy the company for four years.

The gold companies are really struggling to make profits.

They are doing anything possible to stay afloat.

If they can go out and buy a low-cost producer, they will try.

You still need people to buy this stuff, and that is where we are running into some issues.

We have investors very burned from last year, leaving a lot of burden for india and china to pick up the extra supply.

Have you seen the lines in india and china gekko they are showing lines out the door.

The chinese are buying it like crazy.

You saw an increase in gold buying.

They are buying this.

It is a big give-and-take between china and the rest of the world, so we will see if this is going to be a slamdunk short or not.

Fascinating for gold geeks like you and me, ken.

We are "on the markets" in 30 minutes.

"market makers" is up next.

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


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