Citi on gold in 2021 - to see highs toward US$2,100/oz

Author: Eamonn Sheridan | Category: News

A snippet from Citi's outlook for the coming year. 

  • Citi analysts look for gold prices to move toward US$2,100/oz over the next 6-9 months, before moderating in 2022. 
  • Overall, gold prices could average US$1,900/oz in 2021.
Citi cite:
  • A depreciation in the USD could catalyze gold investor inflows, coupled with a rebound in Emerging Market retail demand. 
  • record $16.5 trn in global negative-yielding debt, the opportunity cost of holding a zerocoupon asset like gold has also significantly diminished. 
  • positive vaccine developments on the COVID-19 front ... could slow but not end the gold market bull cycle, so long as the Fed's monetary policy stays accommodative at the zero lower bound - commits to dovish forward guidance and continuing with its QE program. 
  • This is Citi analysts' base case for 1H 2021. However, wider vaccine distribution and a growth recovery may see a moderating of prices and QE in 2H 2021.
A snippet from Citi's outlook for the coming year. 
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