Gold: Looking for a final run to in this cycle toward $2,000/oz before moderating the outlook – CitiBank

Matías Salord FXStreet

Analysts at Citibank tampered their projections on gold and the medium-term average trading range from $2,100-2,200/oz to below $2,000/oz given new monetary policy risks and what may be a much stronger growth profile during the second half of 2021 with vaccine distribution.

Key Quotes:

“The acceleration of the gold sell-off in recent trading sessions occurred despite a push lower in real yields at the belly of the UST curve and a weaker US$. This likely alludes to a position squeeze and technical unwind as opposed to a market regime shift. A bearish US$ outlook and low real rates are tailwinds supporting historically high nominal gold prices. We look for a final bullish hurrah in gold prices this cycle toward $2,000/oz before moderating the price outlook into 2022.”

“Gold have regained the pivotal support range at 1791 - 1803, consisting of key horizontal levels and a 200d MA as well as completing a morning star formation that could be a signal that Gold has bottomed. It may find the support and resistance at 1765 and 1879 respectively 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.

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