Gold Price Forecasts Revised Higher – Citi Says “Buy the Dip”
By: Mark O’Byrne, GoldCore
GoldSeek.com
Monday, 30 May 2016
Gold price forecasts have been revised higher in recent weeks and Citi became the latest bank to revise higher their projections for gold, despite the recent weakness in the price.
Citi Research, the research division of one of the world’s biggest banks, raised its gold price forecast to an average $1,280 in the current quarter, $1,300 in the July-September period, and $1,250 in the final three months of the year.
Citi has become bullish not just on gold but on a large section of the commodities complex, including oil:
“Commodities markets appear to have turned the corner and, led by the petroleum market, are accelerating their price recovery from the lows of the last year, especially since this past January,” Citi said. “While the price increases experienced since early 1Q (first quarter) remain subject to the ‘new normal’ of relatively high volatility, it appears there is no turning back any time soon.”
Citi said that despite the recent gold pullback, now is an “opportune moment” for buyers and now is the time to invest in gold:
“While prices have fallen 3% (month to date) in May, we believe this may in fact prove to be an opportune moment to ‘buy the dip,’” strategists wrote in a note issued Tuesday, titled “Let the Sunshine in as Commodities Enter New Age of Aquarius.”
The Rest…HERE
