Citi sees support for gold at $US1700

Citi has lowered its estimates for flows into gold ETFs and is wary of lower prices for the metal in 2021 as developed economies improve.

• Net investment into gold ETFs to hit 800 tons in 2020, 75 tons less than previously forecast
• and 50% lower again in 2021
• sees support for gold in short term at $1,700
• Cites price rallies for industrial commodities (eg. copper) suggest rotation from risk-averse to risk-on assets
• See a move above $2,000 likely in next 3-6 months
• but "barring a fiat crisis, prices may then trend lower"