1 CORONAVIRUS: DEATH TOLL RISES TO 80 AS CHINA EXTENDS HOLIDAY WWW.BBC.COM PUBLISHED:2020/01/27      2 MONGOLIA TO WORK WITH 2030 WATER RESOURCES GROUP WWW.MONTSAME.MN PUBLISHED:2020/01/27      3 MONGOLIA ON HIGH ALERT DUE TO CORONAVIRUS OUTBREAK WWW.MONTSAME.MN PUBLISHED:2020/01/27      4 BORDER CROSSINGS WITH CHINA CLOSED FOR CHINESE LUNAR NEW YEAR WWW.MONTSAME.MN PUBLISHED:2020/01/27      5 GRETA THUNBERG INVITED TO MONGOLIA WWW.NEWS.MN PUBLISHED:2020/01/27      6 MONGOLIAN PARLIAMENT APPROVES INTELLECTUAL PROPERTY LAW WWW.NEWS.MN PUBLISHED:2020/01/27      7 THE HU: TICKETS IN UK AND IRELAND SOLD OUT! WWW.NEWS.MN PUBLISHED:2020/01/27      8 FORMER PRIME MINISTER OF MONGOLIA RETAINS AMSTERDAM & PARTNERS LLP TO DEFEND AGAINST POLITICALLY MOTIVATED CHARGES WWW.AMSTERDAMANDPARTNERS.COM PUBLISHED:2020/01/27      9 GOLDMAN: CHINA CORONAVIRUS COULD PUSH OIL DOWN BY $3 WWW.RT.COM PUBLISHED:2020/01/24      10 CORONAVIRUS SCARE: 6 PEOPLE EXAMINED IN MONGOLIA WWW.NEWS.MN PUBLISHED:2020/01/24      ПЕТРОВИС ГРУППИЙН МИНИЙ МАШИН... УРАМШУУЛАЛТ ХӨТӨЛБӨР ОРОН ДАЯАР ЭХЭЛЛЭЭ WWW.GOGO.MN НИЙТЭЛСЭН:2020/01/27     МОНГОЛЫН МАРГААШ БОЛ УУЛ УУРХАЙ БУС МАЛ АЖ АХУЙ ЮМ WWW.ZGM.MN  НИЙТЭЛСЭН:2020/01/26     НООЛУУРЫН ДӨРӨВ ДЭХ ТОМ ХЭРЭГЛЭГЧ ГЕРМАНД МОНГОЛЧУУДЫГ ЖИГШИЖ ЭХЭЛЖЭЭ WWW.ZGM.MN НИЙТЭЛСЭН:2020/01/26     УОК: III САРЫН 2-ЫГ ХҮРТЭЛ УЛС ДАЯР СУРГУУЛЬ, ЦЭЦЭРЛЭГИЙН ҮЙЛ АЖИЛЛАГААГ ТҮР ЗОГСООХООР ШИЙДВЭРЛЭВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2020/01/26     ТӨВ БАНК “АРИГ” БАНКАНД НӨХЦӨЛТ УДИРДЛАГЫГ ХЭРЭГЖҮҮЛЭХЭЭР БҮРЭН ЭРХТ ТӨЛӨӨЛӨГЧ ТОМИЛЛОО WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2020/01/26     1991-1994 ОНД ТЭТГЭВЭР ТОГТООЛГОСОН ЗАРИМ ИРГЭНИЙ НЭМЭГДЭЛ 50,000 ТӨГРӨГИЙГ ОЛГОЖ ЭХЭЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2020/01/26     СААРАЛ ЖАГСААЛТААС ГАРАХ ЭХНИЙ ТАЙЛАНГАА ХАМГААЛЖЭЭ WWW.EAGLE.MN  НИЙТЭЛСЭН:2020/01/26     НӨАТ-ЫН БУЦААН ОЛГОЛТЫН САНХҮҮЖИЛТИЙГ САНГИЙН ЯАМАНД ХҮРГҮҮЛНЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2020/01/26     ТӨВ БАНК АЖ АХУЙН НЭГЖҮҮДЭЭС 2.3 ТЭРБУМ АМ.ДОЛЛАР ХУДАЛДАН АВЧЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2020/01/26     MMC: 2019 ОНД 10.7 САЯ ТОНН НҮҮРС ОЛБОРЛОЖ,4.7 САЯ ТОНН УГААСАН КОКСЖИХ НҮҮРС БОРЛУУЛСАН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2020/01/23    

Citigroup says gold may top record www.bloomberg.com

Gold prices may rally to a record above $2,000 an ounce in the next two years, according to Citigroup Inc., which gave a laundry list of positive drivers including rising risks of a global recession and the likelihood that the Federal Reserve will reduce U.S. interest rates to zero.

“We expect spot gold prices to trade stronger for longer, possibly breaching $2,000 an ounce and posting new cyclical highs at some point in the next year or two,” analysts including Aakash Doshi said in a note received Sept. 10. That would exceed the record of $1,921.17 set in 2011.

Low or lower-for-longer nominal and real interest rates; global recession risks — exacerbated by U.S.-China trade tensions; and heightened geopolitical rifts are “combining to buttress a bullish gold market environment,” the bank said. Also, “in affinity to our U.S. rates research colleagues, we believe the Fed will ultimately end up cutting rates all the way to zero,” the analysts wrote.

Gold hit a six-year high this month as central banks ease policy to address the slowdown in growth amid the trade war. This week, investors expect the European Central Bank to unleash more stimulus, while next week the Fed is seen cutting rates again. That’s helped to drive flows into bullion-backed exchange-traded funds as investors track the trajectory of the U.S. economy.

Market signals
“For now, the U.S. consumer and potential growth story is holding up,” Citi said in the note. However, “we remain more concerned about market signals — three-month to 10-year yield curve inversion — and leading indicators that are weakening at the fastest pace since the Great Recession,” it said.

Spot gold traded at $1,491.34 an ounce on Tuesday, up 16% this year after rising for the past four months. Citi said that it had upgraded its baseline forecasts for gold on the Comex by $125 to $1,575 an ounce for the fourth quarter, and by about 14% to $1,675 for 2020.

In July, U.S. monetary policy makers reduced borrowing costs for the first time in more than a decade, and they are widely expected to do so again at their Sept. 17-18 meeting. BNP Paribas SA, which is also bullish on the outlook for bullion, said it expects four quarter-point reductions over the coming year.

Citi’s outlook did come with caveats, including a hawkish turn from the Fed or a breakthrough in trade talks, although that’s not its base case. “A surprise trade deal coupled with a sharp upturn in global manufacturing data would probably suggest a peak for gold at the $1,550 an ounce level for this cycle.”

(By Ranjeetha Pakiam)



Published Date:2019-09-11