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Analysts at Citibank upgrade average gold prices to $1,710/oz for the second quarter and lift their  2020 baseline from $1,640/oz to $1,680/oz. They are concerned about the extraordinary divergence between record strong investor demand for gold and a record weak retail bid.

Key Quotes:

“We think prices are more likely to make a slow grind higher but generally hold a $1,600-1,700 handle, rather than quickly spike to the $1,850-1,950 area. In turn, a global growth and EM recovery in 2021 could be what supports the next leg higher towards $2,000/oz.”

“The daily pattern for gold is now looking increasingly like a bullish triangle. On monthly chart, a picture similar to 2008-2011, pull back before it went higher again. Good resistance is met around $1,800, with support at $1,682-1720.”