Gold prices could see higher highs.

Last trading at $2,472, gold could easily test $2,700 this year, and possibly $3,000 by next year, according to analysts at Citi. Not only is the potential for interest rate cuts driving gold higher, but so is uncertainty with nearing elections and heightened tensions in the Middle East.

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Goldman Sachs just said that gold has the highest potential for a near-term price increase, as noted by LiveMint.com. “Imminent Fed rate cuts are poised to bring Western capital back into the gold market, a component largely absent of the sharp gold rally observed in the last two years,” the brokerage firm said in its note Go for Gold, they added.

Other analysts, including those at Citi have a $3,000 price target on gold over the next 18 months, especially with Middle East tension and the Federal Reserve. Bank of America also said gold could also test $3,000 in the next 12 to 18 months. 

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Sincerely,

Ian Cooper