Analysts at Citibank explained that a second wave concern and escalating geopolitical risk supported the performance of gold. They continue to see XAU/USD reaching $2,000/oz next year.
Key Quotes:
“We upgrade our 3Q’20 gold price forecast to match our recently updated 0-3m point price target of $1,825/oz. This lifts our 2020E base case to $1,740/oz. The expectations of $2,000/oz being breached in 1H’21 is unchanged.”
“Gold/USD point to the inverted head-and-shoulder pattern completed on the daily chart that suggests a target above 1800 in the near term. A bullish set-up on the monthly chart with a close above 1765 would suggest further upside over time towards 1800 followed by the all-time high set in September 2011 at 1921.17”.
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