Gold pushes higher in Europe overnight, Citibank says 30% probability it will top $2000 over next three to six months
(USAGOLD – 7/20/2020) – Gold pushed higher to start the week gaining momentum in European trading hours that carried over to the open in New York. Investors bought the metal as European policy-makers grappled unsuccessfully over a €750 billion coronavirus relief plan this weekend. The yellow metal is trading at $1819 – up $7 on the day. Silver is up 28¢ at $19.70.
Citibank is out with a client advisory this morning in which it says gold is “set to see prices take out the record set in 2011,” according to a report published at Bloomberg this morning. The bank, which has had a consistently favorable outlook for the metal in recent months, says it is “benefiting from loose monetary policy, low real yields, record inflows into exchange-traded funds and increased asset allocation,” according to the report. The bank goes on to say that it is “only a matter of time” until gold surpasses its old record price and that there is a 30% probability it will top $2000 over the next three to six months. Demand for a “store of wealth”, it says, will also “lift silver” to $25 over the next six months to a year.
Chart[s] of the Day
Gold, silver and the DJIA – Year to DateChart courtesy of TradingView.com • • • Click to enlarge.
Chart courtesy of TradingView.com • • • Click to enlarge.
Chart note: As of last Friday (7/17/2020), gold is up 26.8% over the past 12 months. Silver playing catch-up is up 21.02% and the Dow Jones Industrial Average is down 2.32%. Year to date, gold is up 16.54%. Silver is up 7.20% and the DJIA is up 7.02%.