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.
“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.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.