Two thousand dollars an ounce for 2021 is the forecast that the Citi bank has given for the price of gold. Despite the recent pullback in trading, Citi notes that the current circumstances are favorable to rising gold prices.
Citi’s commodity analysts stated that the price of gold would reach $ 2,000 in the medium term, in a report released last week. According to them, metal’s price would average $ 1,715 for the second half of 2020. Meanwhile, investor demand would remain high.
Citi analysts estimate that growth will be gradual. They think that prices are more likely to rise slowly, but generally staying between $ 1,600 – 1,700, rather than making a sharp increase to the area of $ 1,850 – 1,950.
Analyzing technical indicators, Citi observes a stiff resistance at the level of USD 1,800 an ounce. Meanwhile, the support level places it between USD 1,682 and USD 1,720 an ounce. The first level of support established by Citi, the so-called minor support, has been broken, trading the ounce of gold at $ 1,707. All in all, this happened after the price of gold reached its highest rate since 2012.
The silver prices will reach $22 this year
However, Citi sees no positive signs exclusively for the price of gold. The cost of silver also appears in favorable conditions to grow. According to the bank, the silver value will reach $ 22 for the third quarter of the year.
Silver has seen a sharp shift in fortune as investor demand rebounded significantly last week. It took prices to their highest level since late February. Some commodity analysts have said that the future of silver looks bright because of rising industrial demand as countries begin to ease the blockade restrictions, implemented two months ago to try to stop the spread of the coronavirus.
Citi stated the growing geopolitical tensions between the US and China and uncertainty about the economic recovery, will support demand for safe-haven that will push gold and silver prices.
