Bullish sentiment for gold continues to build, with another U.S. bank jumping on the all-time-highs bandwagon, even as the price struggles to find momentum in the short term.
In a report published last week, commodity analysts at Citi said that they see gold prices pushing to $2,000 an ounce in the medium term. The analysts said they are bullish on gold as investor demand is expected to remain strong with the global environment of low to negative interest rates.
In its updated forecast, Citi sees gold prices averaging $1,715 an ounce in the second half of 2020. The bank sees gold prices averaging $1,925 in 2021.
Although Citi expect to see higher prices by next year, analysts are not forecasting a major breakout.
“We think prices are more likely to make a slow grind higher, but generally hold a $1,600-1,700 handle, rather than quickly spike to the $1,850-1,950 area,” the analysts said.
Looking at the technicals, Citi sees strong resistance at $1,800 an ounce and support between $1,682 and $1,720 an ounce. Currently, gold prices are hovering just above the bank’s initial support area. June gold futures last traded at $1,728, down 0.43% on the day.