Gold’s got more room to rally as there’s little possibility of the Federal Reserve raising interest rates in 2020, according to Citigroup Inc (NYSE:C).
Futures on the Comex will average $1,575 an ounce in 2020, and could climb above $1,600, with an upside bias seen at the end of the year, Doshi said. Prices traded around $1,478 on Thursday, up about 15% this year.
Bullion is heading for the biggest annual gain since 2010 as central banks globally embraced looser monetary policy to try to boost growth that had been hit by the prolonged trade war. At its final policy meeting of 2019, the Fed left rates unchanged following three consecutive cuts and signaled they would stay on hold through next year. Chairman Jerome Powell said it would take “a significant move-up in inflation” that persisted before he would support any hikes, suggesting that’s quite distant.
Source : Bloomberg