Citi say short gold is still an appropriate pain trade

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(Kitco News) - Investment bank Citi says it is still sticking with the 'shortgold' as appropriate pain trade over medium-term. Analysts at the banknote, that being short gold is the appropriate 'pain trade' despite"tangible" upside risks to their fourth-quarter 2021 average spot priceforecast of $1,700/oz.

It has to be said that Citi defined medium-term as being the backhalf of 2022 and 2023. In the banks opinion, that was exactly what financialoutflows were signalling, notwithstanding the stabilisation in prices between$1,750-1,800/oz. seen quarter-to-date.

Among the listed factors that might lie behind weaker bullishsentiment towards, particularly versus 2019 and 2020, were the bottoming ofTIPS yields in the belly of the curve, more aggressive Fed pricing in STIRmarkets coupled with a stronger US dollar and inflows into crypto assets.

By Rajan Dhall

For Kitco News

Follow rajfx10rdhall@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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