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‘Only a matter of time’ until gold hits new record high – Citigroup

‘Only a matter of time’ until gold hits new record high – Citigroup
The price of gold has been rallying in recent weeks, having smashed a decade high of $1,800 this month. Analysts at Citigroup say bullish factors building in the gold market are pushing for another record.

According to the analysts, the metal is benefiting from loose monetary policy, low real yields, record inflows into exchange-traded funds and increased asset allocation. They expect the precious metal to climb to an all-time high in the next six to nine months, with a 30 percent 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 G10 and major emerging market currency this year,” the analysts said, as quoted by Bloomberg. “It is only a matter of time for fresh” highs in US dollars, they said, adding that silver will also enjoy a price surge.

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The Covid-19 pandemic has been driving investor appetite for traditional safe-haven assets, with global investment demand soaring to multi-year highs. Economists have been predicting that bullion will top its longstanding record of $1,920 an ounce amid global economic recovery uncertainty.

READ MORE: Gold price set to soar over 20% this year, Russian analysts predict

Gold was trading at $1,811.04 per ounce on Monday, while spot silver gained 0.6 percent to $19.65 per ounce. Citi sees silver, which touched a three-year high, rising to $25 per ounce in the next six to 12 months, with potential for $30 based on the bank’s bull case, additionally supported by a recovery in global economic activity. Both metals are after six straight weeks of gains as investors consider talks on more stimulus in key global economies.

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