(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 DhallFor Kitco News
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