Gold likely to hold around $1600/1700 before rising to $1900 – CitiBank

Given dramatic declines in global bond yields, analysts at Citibank, continue to see gold as a viable hedge during shocks and most negative periods for risk assets. They forecast XAU/USD at $1900 in a 6 to twelve months period. 

Key Quotes:

“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. In turn, a global growth and EM recovery in 2021 could be what supports the next leg higher towards $2,000/oz.”

“Gold/USD’s RSI stay in neutral territory and may trade between $1671-1765 in the short term.”