Gold likely to hold around $1600/1700 before rising to $1900 – CitiBank
Given dramatic declines in global bond yields, analysts at Citibank, continue to see gold as a viable hedge during shocks and most negative periods for risk assets. They forecast XAU/USD at $1900 in a 6 to twelve months period.
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.”
“Gold/USD’s RSI stay in neutral territory and may trade between $1671-1765 in the short term.”
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.
