Comments from Citi on gold. lifting their short-term targets to ~$2,100/oz. 6-12m targets breaching $2,300/oz seems plausible.
- A lot of retail accounts seen liquidating at sub 2000, especially those that bought gold around the 2050 - 2100 level.
- However, deterioration of US-China relations had led money flow into safe havens. Gold price rebounded to above $1900 level.
- We lift gold short-term targets to ~$2,100/oz. 6-12m targets breaching $2,300/oz seems plausible. The record pace of ETF investor inflows, a weakening US$ and negative real yields are the primary drivers for the push higher.
- GoldUSD has been closer to home a break to a new highs would suggest an extended move initially towards $2,400 (the top of the upward trend line).