Gold is expected to climb to an all-time high in the next six-to-nine months, and there’s a 30% probability it’ll top $2,000 an ounce in the next three-to-five months, according to Citigroup Inc.
The metal is benefiting from loose monetary policy, low real yields, record inflows into exchange-traded funds and increased asset allocation, the bank’s analysts including Ed Morse wrote in a report.
“Nominal gold prices have already posted fresh records in every other G-10 and major emerging market currency this year,” the analysts said. “It is only a matter of time for fresh” highs in U.S. dollars, they said, adding that demand for a store of wealth should also lift silver, which touched a three-year high in New York on Monday.
Spot gold has surged 19% this year to the highest since 2011 as the pandemic drove investors to havens, while easier monetary policy and other measures to shore up economies also supported demand.
Spot bullion prices were little changed on Monday, trading at $1,811.04 an ounce at 11:18 a.m. in London. Spot silver gained 0.6%, while most-active Comex futures climbed as high as $19.875 an ounce, the highest since September 2016.
Citi sees silver rising to $25 in the next six to 12 months, with a potential for $30 based on the bank’s bull case, additionally supported by a recovery in global economic activity. Spot silver last traded at those levels in 2013, while gold prices aren’t far off the record $1,921.17 set in 2011.