Editor’s Note: Let yourself be caught in minutes with our quick roundup of today’s must-read news and expert insights that moved precious metals and financial markets. Sign up here!
(Kitco News) Bullish sentiment in the precious metals space will push gold prices to all-time highs, according to Citigroup Inc., which sees the upward move as “just a matter of time.”
“Nominal gold prices have already posted new records across all other G-10s and major emerging market currencies this year,” analysts at Citigroup said in a report. “It’s just a matter of time [highs in USD-terms]. “
The record price to beat is around $ 1,920, which was reached in 2011. As of writing, August gold futures were trading near the nine-year highs of $ 1,840.80, a 1.29% increase on the day. .
Citi projects gold to reach its all-time highs in the next six to nine months, according to the report. On top of that, analysts see a 30% chance that the yellow metal will top $ 2,000 an ounce in the next three to five months.
The drivers that drive gold are lax monetary policies, low real yields, and an increased allocation to gold.
Growing demand for safe haven will also continue to drive up silver prices, analysts added, projecting the precious metal to rise to $ 25 in the next six to twelve months and possibly even reach $ 30 in a bullish scenario.
At the time of writing, September silver rose nearly 7% on the day and was trading at $ 21,540 an ounce.
On Tuesday, the market focuses on a possible agreement between the leaders of the European Union for a massive stimulus package to deal with the economic consequences related to the coronavirus. Markets are optimistic that the € 750 billion ($ 857.33 billion) recovery fund and its related budget of € 1.1 trillion for 2021-2027 will help the EU economy recover after the COVID pandemic -19.
In the United States, investors are carefully watching their own stimulus talks. Senate Majority Leader Mitch McConnell, Treasury Secretary Steven Mnuchin, and other key players will meet Tuesday at the White House. Republicans are expected to propose a $ 1 trillion rescue package, which is much less than the $ 3.5 trillion Democratic proposal.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a request to make any exchange in products, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept guilt for loss and / or damage resulting from the use of this publication.
.
