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Goldman, Citi see gold above $2,000 in 2021: ‘The bull market is not over’

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Despite the upturn in the global economic outlook following multiple coronavirus vaccine breakthroughs, gold's bullish cycle will continue, according to analysts at Citi and Goldman Sachs. 

The traditional safe haven asset hit an all-time high in August of $2,074.88 per ounce, amid fears that the coronavirus crisis looked set to continue indefinitely. 

However, demand for the precious metal has dwindled in recent weeks, as promising news from a number of Covid-19 vaccine producers have bolstered hopes that an end to the pandemic could be in sight. Spot gold was trading down over 1.7% at just under $1,805 per ounce during afternoon trade in Europe on Tuesday. 

Despite this, analysts on Wall Street do not expect the downward trend to continue. 

Citi Head of Commodities Research Aakash Doshi said in a note that he expected vaccine news to slow, but not end, gold's secular bull cycle, suggesting it was "inevitable" for prices to revert back above $2,000 in 2021, as long as U.S. monetary policy did not take an unexpectedly hawkish turn. Gold last traded above this level in late August.

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