Gold prices could breach $2,000 an ounce, says Citi
By Michele Maatouk
Date: Tuesday 10 Sep 2019
(Sharecast News) - Gold prices could breach the $2,000 an ounce level and post new cyclical highs at some point in the next year or two, Citi said in a note on Tuesday.
"From a birds-eye view, low(er) for longer nominal and real interest rates, escalating global recession risks - exacerbated by US-China trade tensions - heightened geopolitical rifts amid rich equity and credit market valuations, coupled with strong central bank and investor buying activity, are all combining to buttress a bullish gold market environment," the bank said.
It also noted that platinum prices have rallied in the past two weeks as investors looked for "cheaper" haven assets.
"While consolidation is likely in the near term, we remain bullish platinum over the next 12 months, owing to our expectations of an improvement in automotive demand," it said.
Citi said a poll last week showed that 75% of respondents thought nickel hadn't peaked and would do so over the next six months.
"We are in the minority camp and think we have likely seen the peak."
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