“Prices are rising as a result of loose monetary policy, low real interest rates, record inflows into mutual funds and growing asset redistribution,” a team of experts at the bank said in its forecast, quoted by Bloomberg.
“Nominal gold prices have already reached new records, denominated in the currencies of the G10 countries, as well as in major emerging markets this year. It is only a matter of time before this happens with the US dollar,” they added.
Since the beginning of the year, the precious metal has risen in price by 19% to almost its highest value in 9 years as a result of investors’ turn to secure assets and government measures to support the economy.
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On Monday, the spot price of gold lost 0.1% of its value to 1808.58 dollars per troy ounce during early trading in Singapore after six consecutive weeks of recovery. Prices are about 6 percent below the historical record of 1921.17 dollars, reached in 2011.
Citigroup expects a rise in other major precious metals as well. According to them, within 6 to 12 months, silver will rise to $ 25 per troy ounce. It is currently trading at $ 19.3084. Palladium is expected to reach $ 2,200 an ounce by the end of the year at $ 2,023 at the moment.