Citigroup sees $2300 coming in the short term.
“Gold has found itself on solid ground so far in 2023 with prices averaging ~$1,895/oz year-to-date as the U.S. Dollar’s strength tapered and inflation abated slightly as oil came off its peaks. Citi sees see four potential macro drivers for the market here:
(1) STIR traders repricing to a significantly lower terminal rate and putting 2H’23 insurance cuts back on the table, prompting a rapid rally across the rates curve;
(2) concerns about potential systemic risk as potentially deflationary or increasing likelihood of recession, leading to investor demand for the ‘lower vol’ safe haven; (3) light positioning for gold ETFs and options heading into the March 22 FOMC; and
(4) physical gold having no counterparty credit risk.”