A snippet from a note via Citi on the primary driver for the higher gold price:

  • The record pace of ETF investor inflows
  • a weakening US$
  • negative real yields

None of these should be surprising if you've following along, but nevertheless a useful 'in a nutshell' outline from Citi.

Targets from the bank:

  • short-term targets to ~$2,100/oz
  • 6-12m targets breaching $2,300/oz seems plausible

Be wary of these factors:

  • The contraction in global jewellery demand for 2020 persists and still appears worse than the GFC. This may put downside risks on gold.
  • Russia (CBR) has paused fresh purchases as of April.
  • The PBoC has not increased gold holdings since last September/October, either.
  • Total net buying of EM CBs should slow dramatically in 2020.
A snippet from a note via Citi on the primary driver for the higher gold price: