CITI Analyst: "The next $200 move for gold is likely to be higher"
'$3,000 Gold In Various Scenarios'
Economic Signals and Policy Shifts
Central Banks are Buying Dips, So is CITI
Equities Convey (Crowded) Calmness Right Now
Wildcard Scenarios Point to $3,000
China Gold Demand No Accident
Tactically Bearish and Buying the $1925 Dip
Bottom line
Report Excerpts
In their latest report, CITI presents a detailed outlook on gold navigating through the intricacies of economic shifts and monetary policy changes. Previous insights are in the Post: The Most Bullish Analysis by a Bearish Bank Ever.
Here is our write up on that report with fresh insights.
1- Economic Signals and Policy Shifts
“Spot gold and prompt Comex futures have held up remarkably well amid a sharp re-pricing of interest rate policy expectations in the US”
The report begins by adjusting the near-term outlook for gold, citing "Hawkish Fed rhetoric and a resilient US$" as key factors delaying expected policy rate cuts to mid-2024.
Despite this, the analysts reaffirm their medium-term gold price targets at $1,950/oz and $2,150/oz. This stance is predicated on a balance between solid physical demand and factors currently dampening gold prices, such as western investor outflows and the relative strength of equity markets.