Citibank analysts expect that the “lower price limit” for gold will also rise from around $1,000 to $2,000 per ounce.
There are also big Wall Street banks that are bullish on gold!
Recently, a team of analysts led by Aakash Doshi, head of North American commodity research at Citibank, said, “Gold 'shines like a diamond'. We expect the price of gold to exceed $3,000 per ounce in the next 6-18 months, and the 'lower price limit' of gold will also rise from around $1,000 to $2,000 per ounce.”
The Wall Street News article mentioned that Goldman Sachs is bullish on gold to 2,700 US dollars, Bank of America expects 3,000 US dollars, while UBS is calling out a high of 4,000 US dollars, double the current price.
Citibank analysts said that geopolitical tension has contributed to the recent rise in gold prices. Demand for safe-haven assets surged after Iran launched more than 300 drones and missiles at Israel.
Market observers are closely watching Israel's possible retaliation. Bartosz Sawicki, an analyst at financial services firm Conotoxia FinTech, said that major retaliation could lead to a wider conflict, which would further trigger a boom in gold purchases and lead to higher oil prices and a stronger dollar.
The price of spot gold reached a record high of 2,400 US dollars per ounce last week. As of April 17, the price of spot gold rose slightly and was still reported at $2383.02 per ounce.
In fact, the price of spot gold has soared since the beginning of the year, rising by more than 15%. This rise is due to a range of factors, including global central bank releases, geopolitical tension, and expectations that the Federal Reserve will cut interest rates.
Normally, the price of gold is inversely proportional to interest rates. When interest rates fall, in contrast, gold is more attractive than fixed-income assets that provide lower returns.
The higher-than-expected US inflation data for March delayed market expectations for September interest rate cuts. Currently, the market expects the Fed to cut interest rates twice instead of three times.
Editor/Somer