Gold prices are expected to continue to trend up in the medium-term – CitiBank

Matías Salord FXStreet

In their 2020 Mid Year Outlook report, analysts at Citibank, point out gold continues to lead all commodities in YTD performance, proving to be an outperformer as a safe haven asset and acts as a risk hedge in portfolios.

Key Quotes:

“Gold markets appear to be in the midst of a multi-year bull cycle and are likely to trade in a higher range. Lower for longer interest rates with QE in full swing, potential lingering macro uncertainty (COVID-19 impacts and new wave of US-China tensions) and strong investor flows could continue to support gold prices and offset weakness in Asian jewelry demand.”

“Gold prices are likely to be non-linear and prices may consolidate around the US$1,600/oz area in 3Q, before advancing again. Citi analysts’ forecasts are for 2020 prices to average between US$1,625 - $1,775/oz, while 2021’s prices may average US$1,925/oz. Adding gold to a portfolio may also improve risk-adjusted performance while volatility in global markets stays elevated.”

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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