Gold prices have been in correction mode this month, sliding below $1,900. Silver has also been crashing this month, falling below $24.
Does this mean the bull run is over? Not by a long shot, says Citigroup.
The financial institution released its latest quarterly commodities outlook, and it believes the yellow metal will climb more than $200 from current levels due to political risks, whether it is the 2020 presidential election or the death of Supreme Court Justice Ruth Bader Ginsburg.
“The election could be an extraordinary catalyst for gold flat price and volatility skew late in the fourth quarter, even though historically there is no clear pattern for gold trading or price volatility into and after U.S. elections,” Citi said. “That is one reason why we expect gold prices to hit fresh records before year-end.”
Overall, Citi thinks gold is in the middle of a bull cycle. Therefore, any declines in gold and silver prices could be temporary and serve as a buying opportunity.
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