Loading ...Others say geopolitical tensions and uncertainty around the world will keep a bid under gold prices. In a recent report, analysts at Citigroup said they are bullish on gold as they see safe-haven demand pushing prices above $1,400 an ounce ” “for sustained periods through 2020.
“Event-driven bids for gold seem to be occurring more frequently and may be the new normal,” the analysts said. “In short, even as the rates and forex channel dominate the outlook for gold pricing, the yellow metal is increasingly being used by investors as a policy and tail risk hedge.”
Citi said gold prices are on track to hit $1,270 per ounce by the end of 2018 and then climb to around $1,370 in 2019.
Potential economic crisis, elections, military actions are some of the key global events that could prompt gold’s safe-haven allure among investors, the bank said