Financial Education

“It’s ‘Only a Matter of Time’ Before Gold Hits a Record.” Citigroup

The gold market are set to see prices take out the record set in 2011, according to Citigroup.⠀

The metal is benefiting from loose monetary policy, low real yields, record inflows into exchange-traded funds and increased asset allocation, the bank’s analysts including Ed Morse wrote in a report. Gold is expected to climb to an all-time high in the next six-to-nine months, and there’s a 30% probability it’ll top $2,000 an ounce in the next three-to-five months.⠀

“Nominal gold prices have already posted fresh records in every other G-10 and major emerging market currency this year,” the analysts said. “It is only a matter of time for fresh” highs in U.S. dollars, they said, adding that demand for a store of wealth should also lift silver, which touched a three-year high in New York on Monday.

Gold Standard Bank Stuttgart, Germany

Citigroup is among a long line of market watchers in predicting bullion will either test or top its long-standing record as the resurgence of coronavirus cases in several parts of the world point to a prolonged and uneven global economic recovery. Spot gold has surged 19% this year to the highest since 2011 as the pandemic drove investors to havens, while easier monetary policy and other measures to shore up economies also supported demand.

Spot bullion prices were little changed on Monday, trading at $1,811.04 an ounce at 11:18 a.m. in London. Spot silver gained 0.6%, while most-active Comex futures climbed as high as $19.875 an ounce, the highest since September 2016. Buy Gold

Gold Breaks $1800

The gold price broke the psychological barrier of $1,800/ounce today July 08, 2020. The futures price had been playing at or above $1800 for over a week, but spot gold just now broke through.

You have to go all the way back to September 2011 to see gold priced this high. Gold came close to $1800 a few times in 2012, but prices above this level now put it near 9-year highs. At $1800, gold is now up 18% on the year.

Silver continues to lag, up about 1% on the year, highlighting the catchup that could be breathtaking when it finally happens.

Meanwhile, the S&P 500 remains underwater in 2020.

While gold leads most investment classes this year, all the catalysts that have propelled it higher remain in place–currency printing, negative real rates, debt and deficit spending, geopolitical conflicts, and the second wave of Covid-19.

This and more leaves us convinced gold is potentially headed much higher before this is over, even if we see a pullback.

I encourage you to make sure you have the number of gold ounces you want. BUY GOLD NOW

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