The price of spot gold remained just above a two-month low on Friday morning, as analysts weighed up the many factors that have been causing the commodity to trade in a tight range in recent months.
Gold rose 0.12 percent on Friday to trade at $1,278.60, amid heightening tensions between Ukraine and Russia, but this could prove to be a brief respite with gold watchers predicting a slight fall in the longer term. Before Friday, the metal had been on a five-day losing streak.
"We think in the next few months we'll get some more downward pressure on gold," Matthew Turner, a precious metals analyst at Macquarie Securities told CNBC Friday.
John Meyer, a mining analyst at brokerage SP Angel, agreed and believes that the weakness will persist for gold. He expects the commodity to be range-bound for the rest of 2014. "Yes gold is heading south for now," he told CNBC Friday.
In the 10 years up until last December 2012, gold had surged around 400 percent, with the help of low interest rates, extra Federal Reserve liquidity and concerns over the global economy. In 2013 it lost 30 percent of its value with the Fed beginning to dial back its $85 billion-a-month stimulus program. This year, meanwhile, the precious metal has added 6 percent to its price with a range of factors influencing both speculators and physical gold buyers.