Citi: Half of Gold's Rally Risk May Ebb Later This Year
BlockBeats News, January 31st, Citigroup Friday said that the gold investment allocation is supported by a series of intertwined geopolitical and economic risks, but about half of these risks may dissipate later this year.
Citibank said that some core risk factors supporting gold demand — including concerns about U.S. government debt and AI uncertainty — could lead to the gold price remaining at elevated levels above historical averages.
However, the bank estimated that most of the risk currently priced into the gold price will not truly materialize by 2026, or even if it does, it will not hold beyond 2026. The bank added: "We see the Trump administration working to achieve 'American-style gold stability' during the 2026 midterm elections, and we also see the end of the Russia-Ukraine conflict and the eventual easing of the Iran situation, all of which will mean a relative decline in risk compared to current levels. If Powell's nomination is approved, this will further confirm our long-held view that the Fed continues to maintain its political independence. This view is another mid-term negative factor affecting the gold price." (Oriental Wealth)
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