- Write by:
-
Monday, July 20, 2020 - 2:02:30 PM
-
505 Visit
-
Print
Mining News Pro - Bullish factors building in the bullion market are set to see prices take out the record set in 2011, according to Citigroup.
Prices are benefiting from loose monetary policy, low real yields, record inflows into exchange-traded funds and increased asset allocation, analysts including Ed Morse wrote in the bank’s third-quarter commodities outlook. Gold is expected climb to an all-time high in the next six-to-nine months, and there’s a 30% probability it’ll top $2 000/oz 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 Citigroup analysts said. “It is only a matter of time for fresh” highs in US dollars, they said.
Gold has surged 19% this year to the highest in almost nine years as the coronavirus pandemic drove investors to havens, while easier monetary policy and other measures to shore up economies also supported demand. 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 virus cases in several parts of the world point to a prolonged and uneven global economic recovery.
Spot gold fell 0.1% to $1 808.58/oz at 12:52 p.m. in Singapore, following six straight weeks of gains. Prices are about 6% away from the all-time high of $1 921.17 set in 2011.
On the stimulus front, the four European Union governments that have been holding up negotiations over a massive package to reboot the bloc’s economy are ready to agree on a key plank of the deal. In the US, talks on a new stimulus package will start at the White House on Monday, while the Federal Reserve meets next week amid pressure for potentially more action as the virus resurgence is clouding the economic outlook. President Donald Trump played down rising cases.
In other forecasts, Citigroup was bullish on silver and palladium on a six-to-12 month view. Silver is expected to rise to $25/oz over that period on sustained investment demand and a recovery in global growth. The bank recommends buying palladium on dips, with prices rising to $2 200 by year-end.
Spot silver retreated 0.1% to $19.3084, while palladium rose 0.2% to $2 023.54.
Short Link:
https://www.miningnews.ir/En/News/570142
South African diversified miner Sibanye Stillwater is discussing with lenders to temporarily lift limits on borrowings, ...
Africa-focused Montage Gold announced Thursday it has received a ministerial order granting all environmental approvals ...
Newmont Corp. has no plans to expedite a decision on its $2.5 billion Yanacocha Sulfides project, dashing the Peruvian ...
China’s central bank added 60,000 troy ounces of gold to its reserves in April, official data showed on Tuesday, ...
BHP’s plan to divest the South African assets of its target Anglo American are key to the strategy behind the proposed ...
Gold rose after mixed signals from the US, where optimism is growing the economy is on target for a soft landing as the ...
Executives from Saudi Arabian mining company Manara Minerals are in Islamabad to continue talks about buying a stake in ...
Anglo American CEO Duncan Wanblad is meeting on Friday South African mines minister Gwede Mantashe for the first time ...
Harmony Gold said on Thursday an employee working on planned rail maintenance had died at its Mponeng mine in South ...
No comments have been posted yet ...