More on that $2,000 gold forecast
I posted last week on Citi forecasts for gold:
Further to that post, Citi note drivers of money flow into safe haven assets and also support gold:
- US-China tension escalation
- concern of second wave crisis drove money flow into safe haven assets
And also as primary drivers for Citi's bullish gold market thesis.
- Gold holdings in ETFs surged to 3.055kt to an all-time high
- Low(er) for long(er) interest rates
- global currency debasement
We think prices are more likely to make a slow grind higher but generally hold a $1,600-1,700 handle, rather than quickly spike to the $1,850-1,950 area.
- a global growth and EM recovery in 2021 could be what supports the next leg higher towards $2,000/oz
- Good resistance is met around $1,800, with support at $1,682-1720.