Citi Tuesday (February 21) slightly raised 2017 gold price expectations, and the bank expects the gold price is expected to rise in the near future.

Citigroup raised 2017 gold price is expected to 1180 US dollars / ounce, higher than last December did estimate 1160 US dollars / ounce. Tuesday (February 21) spot gold trading at 1229 US dollars / ounce near.

Citigroup report: "Due to the risk of political tail and the uncertainty of U.S. policy, gold price tends to rise in the short term."

The bank pointed out that due to the weaker dollar, the price of gold rebounded in January.

The report said: "In February, gold prices rose another 2-3% and seems to be testing the $ 1,250 / ounce, the political situation in Europe (such as the French election) and Trump's financial and economic policy uncertainty after the United States appears to be the price of gold Keep going up. "

Citigroup said historically, gold was the most sensitive commodity to the change in interest rates, but the recent buying of gold seems to decouple its relationship from nominal and real interest rates. As the dollar has also stabilized around 100 in February, This phenomenon has even become even more pronounced. During periods of geopolitical upheaval and policy uncertainty, gold buying could be quite strong, as was the case during the Brexit referendum.

However, Citigroup said the bank is still bullish on the dollar and continues to expect the Federal Reserve to raise interest rates in June, "which also makes our basic bullish view bearish."

Citigroup also raised its 2017 silver price slightly from $ 15.50 / oz to $ 16.10 / oz.