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Analysts at Citibank continue to be bullish over the medium and long term in gold. From a technical perspective, they warn that XAU/USD could correct lower with a close below the 55-day moving average. 

Key Quotes:

“We are bullish gold tactically in the short-term and structurally over the medium-term. We maintain our 0-3m point-price target at $2,200/oz and a 6-12m target at $2,400/oz. We lift the 2021E base case gold price forecast by ~$300/oz, versus our early July update, to a record $2,275/oz.”

“A close below the 55-day MA at $1,920 would look to be a warning of a deeper correction. However, given what happened in June and give the very strong support at $1,902-$1,903.”