CITI Analyst: "The next $200 move for gold is likely to be higher"

'$3,000 Gold In Various Scenarios'

1. Economic Signals and Policy Shifts

2. Central Banks are Buying Dips, So is CITI

3. Equities Convey (Crowded) Calmness Right Now

4. Wildcard Scenarios Point to $3,000

5. China Gold Demand No Accident

6. Tactically Bearish and Buying the $1925 Dip

7. Bottom line

8. 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.