Citi Research Calling for $1,070 Gold in 2016

Forbes reported that Citi Research has upped its 2016 gold price forecast to $1,070 per ounce. That’s a 7.5-percent increase from the firm’s previous outlook.
As quoted in the market news:

Citi’s other full-year forecasts for precious metals include silver, $14.20; platinum, $885; and palladium, $520.
“Gold’s safe-haven rationale is back in vogue for the time being on fears of further China macro contagion, whipsaw equity markets and geopolitical issues in the form of rising Arabian Gulf tensions,” Citi said in a revised commodity outlook late Tuesday.
Against this backdrop, Comex February gold is back above $1,100 an ounce after finishing 2015 at $1,060.50.
“Whilst geopolitical issues typically tend to be short-lived in terms of lending support to gold prices, we expect ongoing global macro concerns to lend support this quarter,” further aided by a modestly more benign U.S. dollar outlook, Citi said. “However, we continue to expect the gold’s inverse USD relationship to hold sway as the year progresses, maintaining a downward trajectory in the yellow metal’s prices.”

Click here to read the full Forbes report.