Citi has lowered its estimates for flows into gold ETFs and is wary of lower prices for the metal in 2021 as developed economies improve.

  • Net investment into gold ETFs to hit 800 tons in 2020, 75 tons less than previously forecast
  • and 50% lower again in 2021
  • sees support for gold in short term at $1,700
  • Cites price rallies for industrial commodities (eg. copper) suggest rotation from risk-averse to risk-on assets
  • See a move above $2,000 likely in next 3-6 months
  • but "barring a fiat crisis, prices may then trend lower"
Citi has lowered its estimates for flows into gold ETFs and is wary of lower prices for the metal in 2021 as developed economies improve.