GOLD : Can gold reach the $2,500 discipline mark?
Updated
Despite gold's consolidation phase, in a report published on Wednesday, commodity analysts at Citi said strong gold demand in the second half of the year could push XAUUSD towards 2,600, as the Investors flocked to precious metals.
Along with renewed investor interest, analysts say they expect central bank demand to hit a record this year. According to the model, analysts expect central banks to buy about 1,100 tons this year, up 5.8% year-on-year and likely exceeding the expected 1,250 tons.
Citi's outlook comes after foreign exchange reserve data from the PBOC showed the bank did not add to China's gold reserves for the second month in a row.
Despite this shift, analysts note that central banks' gold demand has stabilized at a record 28-30% of gold mining output since 2022. They also see demand is likely to increase to 35% in the bullish scenario next year due to the trade war and concerns about US financial policy.
While the gold market remains driven by central bank demand, Citi also expects retail consumers and investors to further drive gold's growth.
“We remain bullish on gold demand over the next 12 months, with potential Fed rate cuts and headwinds in the US labor market helping to boost demand,” Citi analysts wrote. with this metal.
In this situation, Citi predicts XAUUSD will trade between 2,800 and 3,000 by mid-2025.
Along with renewed investor interest, analysts say they expect central bank demand to hit a record this year. According to the model, analysts expect central banks to buy about 1,100 tons this year, up 5.8% year-on-year and likely exceeding the expected 1,250 tons.
Citi's outlook comes after foreign exchange reserve data from the PBOC showed the bank did not add to China's gold reserves for the second month in a row.
Despite this shift, analysts note that central banks' gold demand has stabilized at a record 28-30% of gold mining output since 2022. They also see demand is likely to increase to 35% in the bullish scenario next year due to the trade war and concerns about US financial policy.
While the gold market remains driven by central bank demand, Citi also expects retail consumers and investors to further drive gold's growth.
“We remain bullish on gold demand over the next 12 months, with potential Fed rate cuts and headwinds in the US labor market helping to boost demand,” Citi analysts wrote. with this metal.
In this situation, Citi predicts XAUUSD will trade between 2,800 and 3,000 by mid-2025.
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