Oil costs might increase to $100 per barrel and gold costs might reach $3,000 per ounce within the next 12 to 18 months, based on 3 possible drivers, CNBC reported, mentioning Citi experts.
Aakash Doshi, Citi’s North America head of products research study, informed CNBC that gold is presently trading at $2,016 and might rise by about 50% if reserve banks significantly increase purchases.
“The most likely wildcard course to $3,000/ oz gold is a quick velocity of an existing however slow-moving pattern: de-dollarization throughout Emerging Markets reserve banks that in turn results in a crisis of self-confidence in the U.S. dollar,” Citi experts composed in a current note.
Another element that might drive gold rates to this level is the international economy’s deep economic crisis, which might trigger the United States Federal Reserve to cut rates quickly. Doshi thinks this situation is not likely.
The note highlighted the aspects stimulating the increase in oil costs to $100 per barrel, that include the escalation of geopolitical dangers, such as the danger of Ukraine assaulting Russian refineries with drones, and the cessation of materials from the primary locations of black gold production, along with OPEC+ deepening production cuts.