Gold weakens in today’s early going; Credit Suisse and Citibank out with mid-year forecasts
(USAGOLD – 6/24/2020) – Gold looks like it is weakening in today’s early going after making an attempt at the $1780 level overnight. It is now down $2 on the day at $1768. Silver is down 45¢ at $17.56. A couple of big bank trading desks – Credit Suisse and Citibank – are out with mid-year forecasts this week. “With 10yr US real yields threatening to break lower,” says Credit Suisse in a report cited at FXStreet, “we look for gold to correspondingly break higher from its range above $1765 to confirm a resumption of its core bull trend with resistance seen at $1796/1803 next. … Big picture, we continue to eventually look for new highs above $1921, with resistance then seen next at $2000, then $2075/80.” Also posted at FXStreet, Citibank sees “a slow grind higher” for gold with $1900 the target in six to twelve months and then another leg higher in 2021 “towards $2000 per ounce.”
Chart[s] of the Day
Charts courtesy of GoldChartsRUs.com
Chart note: With everything else that is going on in the economy and financial markets, It is easy to overlook the fact that we are heading into the summer doldrums for the precious metals – a time historically when demand sags, prices typically stay in a range, and dip-buyers take whatever opportunities might present themselves. Then again, as unpredictable as markets have become, anything could happen – including a summer rally in precious metals prices.