Home Gold prices are expected to continue to trend up in the medium-term – CitiBank
FXStreet News

Gold prices are expected to continue to trend up in the medium-term – CitiBank

In their 2020 Mid Year Outlook report, analysts at Citibank, point out gold continues to lead all commodities in YTD performance, proving to be an outperformer as a safe haven asset and acts as a risk hedge in portfolios. 

Key Quotes:

“Gold markets appear to be in the midst of a multi-year bull cycle and are likely to trade in a higher range. Lower for longer interest rates with QE in full swing, potential lingering macro uncertainty (COVID-19 impacts and new wave of US-China tensions) and strong investor flows could continue to support gold prices and offset weakness in Asian jewelry demand.”

“Gold prices are likely to be non-linear and prices may consolidate around the US$1,600/oz area in 3Q, before advancing again. Citi analysts’ forecasts are for 2020 prices to average between US$1,625 – $1,775/oz, while 2021’s prices may average US$1,925/oz. Adding gold to a portfolio may also improve risk-adjusted performance while volatility in global markets stays elevated.”

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.