China buys more gold, Citi sees US$2,000/oz
China added 15.91 tons of gold to its reserves in July and August, making the total increase a whopping 100 tons since December 2018.
Both the Chinese and Russian central banks have been acquiring the precious metal in recent times, something western banks seem to have not given any thought to mimic.
Which is surprising considering Citigroup stated this week that it sees gold headed for new record highs of US$2,000 per ounce “within the next year or two”.
Commodity researchers at the bank claim a perfect storm of low interest rates around the world, mounting recession risks, trade wars and demand for the precious metals to be the driving factors.
However Citi also noted was that in the near-term the price of the metal could face headwinds. With rate cuts from the Federal Reserve, a US-China trade truce and a pick up in global manufacturing data potential factors.
