“Nominal gold prices have already set new records in all other G-10 currencies and major emerging market currencies this year,” Citigroup analysts said in a report. “It is only a matter of time to [highs in USD-terms]. »
The record price to break is around $ 1,920, which was reached in 2011. At the time of writing, August gold futures were trading near nine-year highs in $ 1,840.80, up 1.29% on the day.
Citi projects gold to hit 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 exceed $ 2,000 an ounce over the next three to five months.
The factors pushing gold higher are loose monetary policies, low real yields and an increased allocation to gold.
Growing demand for safe-haven securities will also continue to drive silver prices higher, analysts added, predicting that the precious metal will hit $ 25 over the next six to twelve months and could even hit $ 30 in a bullish scenario.
At the time of writing, September Silver was up almost 7% on the day and was trading at $ 21,540 an ounce.
On Tuesday, the market is focused on a potential deal between European Union leaders for a massive stimulus package that addresses the economic fallout from the coronavirus. Markets are optimistic that the € 750 billion ($ 857.33 billion) stimulus fund and its € 1.1 trillion 2021-2027 budget will help the EU economy to recover. recover after the COVID-19 pandemic.
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 are due to meet at the White House on Tuesday. Republicans are expected to come up with a $ 1 trillion bailout, which is far less than the Democratic $ 3.5 trillion proposal.
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