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Tuesday, July 21, 2020

Citi: 'Only a Matter of Time' Before Gold Hits Record, Tops $2,000

Bullish factors building in the gold market are set to see prices take out the record set in 2011, according to Citigroup Inc.

The metal is benefiting from loose monetary policy, low real yields, record inflows into exchange-traded funds and increased asset allocation, the bank’s analysts including Ed Morse wrote in a report. Gold is expected to climb to an all-time high in the next six-to-nine months, and there’s a 30% probability it’ll top $2,000 an ounce in the next three-to-five months.

“Nominal gold prices have already posted fresh records in every other G-10 and major emerging market currency this year,” the analysts said. “It is only a matter of time for fresh” highs in U.S. dollars, they said, adding that demand for a store of wealth should also lift silver, which touched a three-year high in New York on Monday.

Citigroup is among a long line of market watchers in predicting bullion will either test or top its long-standing record as the resurgence of coronavirus cases in several parts of the world point to a prolonged and uneven global economic recovery. Spot gold has surged 19% this year to the highest since 2011 as the pandemic drove investors to havens, while easier monetary policy and other measures to shore up economies also supported demand.

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10 comments:

  1. At this point in time lead is a better investment than gold

    ReplyDelete
  2. Gold reflects the implied value of fiat currency

    ReplyDelete
  3. Right now, I'm investing in lead.

    ReplyDelete
  4. And then it either has to be redeemed or held on to.The holder can hold it long term or short term,but he/she cannot spend it to buy goods.I collect silver myself & sell it when it peaks.Gold is too time consuming to be worth the effort.

    ReplyDelete
  5. Based on history/economics - when folks clammer to gold and it goes up, economy is NOT doing well.

    Sure hope not, but history/economics never fails.

    ReplyDelete
    Replies
    1. 9:59
      Did you read your post?
      If it never fails, then for what are you hoping?

      Delete
  6. For information;
    Gold tooth caps are now being made with a lot less gold and actual magnetic steel mixed it!
    My cap fell off and just for the fun of it I tried a fridge magnet on it and it picked right up!
    I had read this but said to myself no can't be, but it is true!

    ReplyDelete
  7. May I have my next stimulus payment in gold, please?

    ReplyDelete

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