×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: citi | gold | price

Citi Sees a 'Bullish Break' for Gold

Citi Sees a 'Bullish Break' for Gold

Thursday, 29 August 2019 06:06 PM

Citigroup Inc. has raised the possibility gold may extend its impressive rally should it breach a technical level against a major U.S. equity market benchmark, adding to positive commentary around the metal.

The ratio between bullion and the S&P 500 Index is “testing key pivots that extend up to the Christmas highs,” Shyam Devani, senior technical strategist, said in a note. “It is only a matter of time before a significant bullish break occurs that could trigger a rally to the tune of 25% in favor of gold.”

Gold has powered ahead this year, hitting a six-year high above $1,500 an ounce, as global trade tensions, slowing economic growth and investors seeking alternatives to risk assets including equities boost demand. Among bulls, UBS Group AG says prices will surge to $1,650 over 12 months as central-bank easing spurs flows into bullion-backed exchange-traded funds.

“Equity markets continue to look vulnerable, especially given the deeper inversion of the U.S. yield curve,” Citigroup said, highlighting the potential for gains in bullion: “Sometimes the ratio between asset classes is too hot. Sometimes too cold. But sometimes the chart signals ‘Just right’.”

Spot gold slipped 0.1% to $1,541.08 an ounce on Wednesday, but is still up 20% this year.

© Copyright 2021 Bloomberg News. All rights reserved.


Markets
Citigroup Inc. has raised the possibility gold may extend its impressive rally should it breach a technical level against a major U.S. equity market benchmark, adding to positive commentary around the metal.The ratio between bullion and the S&P 500 Index is "testing key...
citi, gold, price
204
2019-06-29
Thursday, 29 August 2019 06:06 PM
Newsmax Media, Inc.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved