[ad_1]
Citigroup predicts that the price of gold will hit a new record in the next year or two years.
The commodity bank's research team said low interest rates around the world, rising risks of recession, compounded by the China-China trade war, increased geopolitical risks and the increased demand create the perfect storm for the precious metal.
"We believe it is reasonable to consider a growing likelihood that the bullion markets will be able to retest the nominal price peaks of 2011-2013 and negotiate them at $ 1,800-2,000 / oz by 2021 /. 22, in favor of a US economic cycle turned towards a slower growth / recession. in addition to electoral uncertainties, "the analysts wrote. Gold reached a record of over $ 1,900 dollars an ounce in August 2011.
READ MORE ON FOXBUSINESS.COM
According to Citi, lagging measures such as the US consumer (retail sales, employment, etc.) and economic growth remain, but market signals (the inverse yield curve) and leading indicators are deteriorating at the same time. their fastest pace since the global financial crisis. crisis.
Analysts believe the precious metal will face short-term headwinds offering immediate buying opportunities when the US Federal Reserve lowers rates to zero. They believe that a global slowdown could weigh on jewelry demand in China and that the high price of gold would slow down coin / bullion purchases, strong demand from institutional investors and the measures taken by central banks should provide support.
They warn that there are two results that would set the top in the yellow metal.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
"Even if this is not the case of Citi core, which predicts that trade tensions between the US and China (for example, no deal) will continue until the 2020 US elections, an agreement Surprisingly, a surprise rise in global manufacturing data would likely point to a peak for gold at $ 1,550 / ounce for this cycle, "they wrote.
[ad_2]
Source link