Gold has been pretty flat this week compared to last week. That is a remarkable performance after the strong spike of last Friday, however, when the Chinese central bank announced that it is going to lower interest rates. The more expansive policy of the European Central Bank also caused a spark.

Mario Draghi announced that the ECB will do everything that is necessary to halt deflation in the Eurozone. Analysts from Commerzbank mostly see speculative elements that sent the gold price higher. They feel that the fundamentals that support gold are still weak. Why they feel that way is beyond us.

Gold Price Is Doing Great Considering

But the analysts from Capital Economics see things differently. They feel that the gold price is doing great in 2014, especially considering the inhospitable climate for the yellow precious metal. The strong US economy, low inflation, the end of QE, and the strong dollar are all forces that work against the gold price.

Nevertheless, the Capital Economics’ analysts feel that there is room for the gold price to climb back to $1,400 per ounce over the coming 2 years. A potential ‘Yes’ in the Swiss referendum could possibly be a catalyst to push the gold price north of $1,200 for good.