The bank listed a full-year outlook of $1,180 an ounce, up from a $1,160 forecast listed in December. As of8:43 a.m. EST, spot gold was at $1,229.10.
Citi listed “an upside bias in the short term on political tail risk and U.S. policy uncertainty.”
Gold rallied in January as the U.S. dollar weakened, Citi said.
“But through February, with gold breaking out another 2-3% and appearing to test $1,250 in fits and starts, European politics (e.g. French elections) and uncertainty around U.S. fiscal and economic policy under [President Donald] Trump are supporting a higher price environment,” the bank said.
However, Citi said it also remains bullish on the U.S. dollar and continues to expect a Federal Reserve hike in June, “thus putting our baseline gold view as neutral-bearish. However, we caution gold price tail risks are potentially towards the upside for now.”
The bank also upped its silver forecast modestly to $16.10 for full-year 2017, compared to $15.50 in December. Platinum is seen averaging $985 and palladium $745, up from $965 and $715 in the bank’s December forecast.
Reference: Kitco
Thai
Eng