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<Research> Citi Maintains Bearish View on Gold, Cuts Short-term TP to USD4,000 per Ounce
Citi said in a report that, affected by strong US employment data last Fri (5th), gold closed below its 200-day moving average for the first time since September 2023. The bank mai...
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<Research> Citi Maintains Bearish View on Gold, Cuts Short-term TP to USD4,000 per Ounce
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Citi said in a report that, affected by strong US employment data last Fri (5th), gold closed below its 200-day moving average for the first time since September 2023. The bank maintained its bearish view on gold and lowered its 0-3 month target price from USD4,300 per ounce to USD4,000 per ounce.

The report noted that to sustain current gold price levels, physical gold purchases would need to remain at a pace of around USD900 billion per year, compared with a normal annual purchase level of only USD250 billion to USD400 billion (in today’s dollars) between 2010 and 2024.

Related NewsCiti Raises ZHAOJIN MINING (01818.HK) TP to HKD41.4, Reiterates Buy
The bank is concerned that if the Strait of Hormuz remains closed throughout the summer, gold purchases could fall to what would still be a sizeable USD700 billion to USD750 billion per year. This would mechanically drive gold prices back to levels seen 9 to 10 months ago, near USD3,500 per ounce.

Citi stated that short-term risks for gold are skewed to the downside. Buying on dips at this stage is suitable only for investors who strongly believe that the situation will not escalate further. In the long term, the bank remains bullish on gold, but in the near term, risks are extremely high for investors without very wide stop-loss limits and a longer investment horizon. (ha/da)

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