Gold price 8217 s 2013 fall 8216 worst for 30 years 8217

Gold's decade-long recovery came to an end with a bump over the course of 2013, as the precious metal suffered its biggest annual fall in more than 30 years.

The metal's reputation as the premier safe haven was badly damaged in the last 12 months as its price ended the year 28 per cent lower than it had stood on January 1st 2013.

Having closed last year at about $1,200 (£725) an ounce, the precious metal was therefore among the worst-performing asset classes, which may persuade investors to steer clear of gold as they build their portfolios for the coming 12 months.

In contrast, many of the world's leading stock markets performed very well in 2013, with Japanese index the Nikkei closing the year 57 per cent up on the start. There were also strong gains recorded by the S&P 500, which was up by 28 per cent, while the FTSE 100 improved by around 13 per cent and the value of brent crude oil futures was 2.5 per cent higher for the year.

Speaking to the Daily Telegraph, Ole Hansen, head of commodity strategy at Saxo Bank, explained that equities were the victors in the battle with gold during 2013. Mr Hansen correctly predicted gold would fall to around the $1,200 level last year and is now forecasting that prices have bottomed out.

"We won't see a year of big movements after the recent ten-year rally ended. In fact, we could see some consolidation," he told the newspaper.

Sentiment against gold

Mark Bristow, chief executive of African-focused gold mining company Randgold Resources, added that sentiment is "strongly" against gold in the markets at the current time. He said: "Globally, economic policy has been driven by popular politics and not sound business sense."

The specialist argued that one of the reasons the price of gold has fallen in the last year has been because of over-production, which he described as being a major problem.

"There is a lot of pain ahead. A lot of miners are going to have to deal with the market very differently," he said.

Find out about commodities trading and learn CFD strategies at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.