Gold: Bullsih, 0-3M target at $1450/oz - CitiBank

In their weekly strategy report, analysts at Citibank remain bullish on gold and see price moving above $1500/oz in a six to twelve months period. 

Key Quotes:

“We remain bullish gold and maintain a 0-3m gold point-price target of USD$1,450/oz and a 6-12m point-price target of $1,525/oz.”

“Federal Reserve officials did not push back against market expectations for at least a 25 bps policy rate cut at the July Fed meeting. Notably, neither the US-China trade spat ceasefire post-G20 nor the strong June payrolls data provoked any shift in dovish signaling from them. A dovish turn from the Fed, ECB and other central banks appears to be signaling a bullish regime shift for gold.”

“With monetary policy and the rates cycle in the driver’s seat for gold, we think COMEX prices will not be deterred by “riskon” sentiment and record equity index levels, so long as central bank policy remains dovish here.”

“Over the past month, gold has seen a bullish break through the 1360 area which is where a LT inverted head and shoulders neckline comes in and suggests a rally to 1522-32 over the weeks ahead.”