Gold likely to average $1,320 an ounce in Q4

Published: Oct 9, 2016 10:32

Save

Citi Research analysts remain skeptical of a gold-market rally into year-end, reiterating their call for the precious metal to average $1,320 an ounce in the fourth quarter.

UNITED STATES October 05 2016 1:37 PM

NEW YORK (Scrap Register): Citi Research analysts remain skeptical of a gold-market rally into year-end, reiterating their call for the precious metal to average $1,320 an ounce in the fourth quarter.

Looking ahead, Citi Research believes several structural price drivers appear challenged. Stable mine supply coupled with subdued Asian retail demand cap price expectations. Investment demand has been the clear outlier to this trend as ETF (exchange-traded-fund) holdings curbed three years of net disinvestment; however, inflows appear to be stalling.

Citi Research expects full-year ETF inflows of around 650 tons but also notes most occurred earlier in the year, with September inflows of 11 tons down from the year-to-date average of 80. The U.S. dollar could make or break gold sentiment.

Citi Research gold prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn