Courtesy of Pam Martens
Price of Gold, March 1, 2009 to September 9, 2019
By Pam Martens and Russ Martens
Citigroup released an analyst’s note yesterday stating that “We expect spot gold prices to trade stronger for longer, possibly breaching $2,000 an ounce and posting new cyclical highs at some point in the next year or two.”
Gold was last on a record-breaking streak in 2011 when it shot through handles of $1500, $1600, $1700 and $1800 from April through August of that year. On an intraday trading basis, gold reached a high of $1,917.90 an ounce on August 23, 2011 and another intraday high of $1923.70 on September 6, 2011.
Gold then spent the next five years trading back down to the $1100 range. As the chart above indicates, gold has been moving decidedly higher this year, up 16.9 percent from January 2, 2019 to yesterday’s close. At 9:16 this morning, gold was trading at $1,504.40 an ounce.
Is Citigroup simply talking its book when it comes to gold? If so, it wouldn’t be the first time. The bank played a central role in the analyst research scandals of the dot.com era when its analyst, Jack Grubman, was touting stocks to investors while calling them “pigs” internally.
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