Gold: Set to hit a record high in the next 6 to 9 months – Citibank
Analysts at Citigroup cite four key reasons behind gold’s next leg higher to a record high in the coming months.
Key quotes
“The price of gold will hit a record high in the next 6 to 9 months.”
“Assess a 30% probability it would go above $2,000 in the next 3-5 months.”
Citing “loose monetary policy, low real yields, record ETF inflows and increased gold asset allocation.”
"Nominal gold prices have already posted fresh records in every other G-10 and major EM currency this year, so we believe it is only a matter of time for fresh gold-USD highs."
See gold averaging $1,750 this year, 1,965 next year.
Sustained deflation shock and major hawkish turn from the Fed could limit the upside.
This is, however, highly unlikely in 2020.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
