The rally in the gold price regained momentum on Monday as investors continue to pile into hard assets amid a flood of easy money on financial markets in the developed world and expectations of a prolonged period of ultra-low interest rates and currency debasement.
Gold for delivery in August, the most active contract on the Comex market in new york with 17 million ounces traded by early afternoon, touched a high of $1,823.40 an oz, just short of a near 9-year high.
Gold is currently up 19.7%, or $300 an oz to date this year. The last time gold traded higher than $1,800 an oz was September 2011, however it ended that year at $1,565 an oz.
Bloomberg reports, according to Citigroup’s third-quarter commodities outlook, the value of gold “is expected to climb to an all-time high within the next six-to-nine months, and there’s a 30% likelihood it’ll top $2,000 an oz within the next three-to-five months.”
“Nominal gold prices have already posted fresh records in every other G-10 and major emerging market currency this year,” Citigroup analysts said.
“It is merely a matter of time for fresh” highs in United States dollars, they said.