Gold: Daily pattern looking increasingly like a bullish triangle – CitiBank

Matías Salord FXStreet

Analysts at Citibank upgrade average gold prices to $1,710/oz for the second quarter and lift their 2020 baseline from $1,640/oz to $1,680/oz. They are concerned about the extraordinary divergence between record strong investor demand for gold and a record weak retail bid.

Key Quotes:

“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. In turn, a global growth and EM recovery in 2021 could be what supports the next leg higher towards $2,000/oz.”

“The daily pattern for gold is now looking increasingly like a bullish triangle. On monthly chart, a picture similar to 2008-2011, pull back before it went higher again. Good resistance is met around $1,800, with support at $1,682-1720.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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