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)
Citi says the price of gold will hit a record high in the next 6 to 9 months