He gold It falls this Tuesday but it comes from registering all-time highs, as safe haven demand remained supported by geopolitical tensions in the Middle East. In this context, Citi believes that US$3,000 per ounce could be reached.
Spot gold falls 0.5% to US$2,370.27 per ounceremaining close to the historical highs recorded on Friday at US$2,431.53 per ounce.
The recent rise in the precious metal was largely due to worsening geopolitical tensions in the Eastafter Iran attacked Israel over the weekend.
Gold is traditionally considered a safe haven due to its relative price stabilityespecially in times of global conflict.
What Citi said about the price of gold
“The recent rally in gold has been favored by geopolitical heat and coincides with record levels of stock indices; therefore, Higher risk-averse environment should boost prices further“said the analysts of Citiin a note, dated April 15.
“And what is more important, the gold bullion complex has decoupled from interest rates and the US dollar, suggesting the market is supported by strong physical consumption factors (e.g. imports from India and China, bars and coins), demand for alternative metals, geopolitical hedges and central bank purchases.”
The bank raised its gold price reference forecasts to the bullish scenario, and by 2024 this represents an increase of 6.8% to US$2,350 per ounce; estimated for 2025, this represents an upward revision of 40% to US$2,875 per ounce.
“We project $3,000 per ounce of gold for the next 6-18 months, which is 20% above futures and more than 25% above the spot price. “We expect the price to regularly test and exceed $2,500 per ounce in the second half of 2004,” the bank added.
Source: Ambito
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