Citi on gold's multi-year bull cycle - higher prices ahead (but not yet)
Citi forecasts for the price of gold:
- gold prices are likely to be non-linear
- and prices may consolidate around the US$1,600/oz area in 3Q, before advancing again
- forecasts are for 2020 prices to average between US$1,625 - $1,775/oz,
- 2021's prices may average US$1,925/oz
- Gold markets appear to be in the midst of a multi-year bull cycle
- are likely to trade in a higher range.
- lower for longer interest rates with QE in full swing, potential lingering macro uncertainty (COVID-19 impacts and new wave of US-China tensions) and strong investor flows could continue to support gold prices and offset weakness in Asian jewellery demand.