Gold: In midst of a multi-year bull cycle – Citibank

According to the analysts at Citibank, gold prices are likely to consolidate in the near-term before resuming its advance once again.

Key quotes

“Gold prices are likely to be non-linear.

Prices may consolidate around the US$1,600/oz area in 3Q, before advancing again.

Forecasts are for 2020 prices to average between USD1,625 - USD1,775/oz, 

2021's prices may average US$1,925/oz.

Gold markets appear to be in the midst of a multi-year bull cycle.

Gold likely to trade in a higher range.

Lower for longer interest rates with QE in full swing, potential lingering macro uncertainty (COVID-19 impacts and new wave of US-China tensions) and strong investor flows could continue to support gold prices and offset weakness in Asian jewellery demand. “