Monday Open: $1,667.80
Weekly High: $1,694.10
Weekly Low: $1,667.80
Friday Close: $1,684.30

It was a good week for gold. After continued hums in the marketplace questioning gold’s volatility, January is proving to be a bull month for this yellow metal. Gold gained 1.6% this week, its highest move since November 2012. This follows last week’s 0.3% gain, which ended a six-week long losing spree. Speculation still abounds about gold’s true winning capacity, but so far, the market is showing slow but steady gains.

Monday opened with the low of the week and shot steadily upwards through Tuesday. On Tuesday morning, news broke that platinum was trading higher than gold, a rare phenomenon that last occurred March 2012. Platinum hit $1,702 while gold stayed around $1,682. Platinum rose largely due to the halting of some major mines, increasing desire for the metal. Gold responded little on Tuesday, but as platinum hit its seventh bullish day on Wednesday, gold did take a little drop.

Thursday’s drastic price fall can be attributed to the U.S. weekly jobless claims report, which was significantly better than expected. However, gold quickly rebounded a little while later in the day after U.S. manufacturing data revealed unexpected contraction.

Though the fiscal cliff crisis has passed, Credit Suisse analyst Tom Kendall pinpoints the U.S. debt ceiling as a major factor for gold. He assesses the situation as being positive for gold, since the U.S. faces downgrades from credit agencies, and thus a stronger investment in hedge funds. It will also get people thinking about the long-term value of the dollar, which will most likely turn out to be bullish for gold. The debt ceiling debate is on the horizon for the end of February.

Friday consolidated the week’s gains to end on a high note. Amid the trading activity this week, a few major investment companies added further speculative projections for gold in 2013. The projections vary drastically, as Goldman Sachs downgraded its 2013 gold prediction to $1,200, while successful gold producer Iamgold upgraded its projections to $2,500. Falling smack dab in the middle, metals consultancy firm GFMS predicted a bullish year for gold, anticipating $1,900 in the first two quarters. This firm cites strong demand from central governments and increased buying from India and China as factors for growth.

Despite hesitation in the market, the overall sentiment still maintains a positive light. Analysts at UBS, a Canadian financial firm, summed up Friday’s gains by stating, “The physical market is off to a good start this year, with many indicators so far pointing to a positive demand story.”