Gold: Set to hit a record high in the next 6 to 9 months – Citibank

0

Analysts at Citigroup cite four key reasons behind gold’s next leg higher to a record high in the coming months.

Key quotes

“The price of gold will hit a record high in the next 6 to 9 months.”

“Assess a 30% probability it would go above $2,000 in the next 3-5 months.”

Citing “loose monetary policy, low real yields, record ETF inflows and increased gold asset allocation.” 

“Nominal gold prices have already posted fresh records in every other G-10 and major EM currency this year, so we believe it is only a matter of time for fresh gold-USD highs.”

See gold averaging $1,750 this year, 1,965 next year.

Sustained deflation shock and major hawkish turn from the Fed could limit the upside.

This is, however, highly unlikely in 2020.”

Get the 5 most predictable currency pairs

About Author

Comments are closed.