Analysts at Citigroup, Inc. presented a solid case for the price gold to reach all-time highs, in a note released September 10th. “We now expect spot gold prices to trade stronger for longer, possibly breaching $2,000/oz and posting new cyclical highs at some point in the next year or two,” they noted.
According to Citi:
From a birds-eye view, low(er) for longer nominal and real interest rates, escalating global recession risks—exacerbated by U.S.-China trade tensions—heightened geopolitical rifts amid rich equity and credit market valuations, coupled with strong central bank and investor buying activity, are all combining to buttress a bullish gold market environment.
The previous record for gold was $1,921, set back in 2011. Analysts presented a list of factors that they perceived as bullish for the gold markets.
Increased risk of a global recession, continuing trade war tensions, and the possibility of the Federal Reserve reducing U.S. interest rates to zero are seen as factors that can lead investors to seek “safe haven” assets, such as gold and precious metals.