Analysts at Citibank forecast gold prices will reach $2,100/oz in a three month perspective and $2,300 over the next six to twelve months. They point out the record pace of ETF investor inflows, a weakening dollar and negative real yields are the primary drivers.
Key Quotes:
“We lift gold short-term targets to ~$2,100/oz. 6-12m targets breaching $2,300/oz seems plausible. The record pace of ETF investor inflows, a weakening US$ and negative real yields are the primary drivers for the push higher.”
“GoldUSD has been closer to home a break to new highs would suggest an extended move initially towards $2,400 (trend line off the 1980 and 2011 highs).”