Analysts at Citibank offer key insights on why is gold’s next move higher, as the bulls look towards $2000/oz.
Key quotes
“Drivers of money flow into safe-haven assets and also support gold amid US-China tension escalation.
The concern of the second wave crisis drove money flow into safe-haven assets.
And also as primary drivers for Citi’s bullish gold market thesis.
Gold holdings in ETFs surged to 3.055kt to an all-time high.
Low(er) for long(er) interest rates and global currency debasement.
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.
Global growth and EM recovery in 2021 could be what supports the next leg higher towards $2,000/oz
Good resistance is met around $1,800, with support at $1,682-1720.”
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