Gold Could Soar to $3K, Oil to $100: Citi Analysts

Citi analysts predict that gold could reach $3,000 an ounce and oil could rise to $100 per barrel due to central banks’ gold purchases, a potential recession, and ongoing conflicts in the Middle East. The trend toward de-dollarization among central banks could bring what Doshi calls a “crisis of confidence in the U.S. dollar,” prompting central banks to diversify their reserves and double their gold purchases.
Central banks have already accelerated their gold purchases to record-levels in recent years, Doshi wrote. Because gold prices move in the opposite direction of interest rates, an emergence of a world recession would bring the price to $3,000. Citi analysts believe oil could hit $100 due to geopolitical risks and supply disruptions in key oil-producing regions.