Citi says the price of gold will hit a record high in the next 6 to 9 months
- and assess a 30% probability it would go above $2,000 in the next 3-5 months
4 bullish factors:
- loose monetary policy
- low real yields
- record ETF inflows
- 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"
Citi sees gold averaging $US1,750 this year, 1,965 next year
Risks
- sustained deflation shock
- major hawkish turn from the Fed (Citi say this is highly unlikely in 2020)