Citigroup believes gold could top $2,000 a troy ounce in the next 12 to 24 months

The price of gold was approaching seven-year highs on Wednesday, as investors shrugged off a surging dollar that’s normally seen as a headwind for precious metals. Gold is rallying on the back of renewed haven demand as central banks prepare more easing measures to prop up sagging economies. In the case of the Federal Reserve, multiple rate cuts are on the table this year, according to traders closely monitoring the situation.

April gold futures jumped 0.7% to $1,614.40 a troy ounce on the Comex division of the New York Mercantile Exchange, coming within $5.20 of a new seven-year high. On Tuesday, gold settled above $1,600 for the first time since 2013. The yellow metal has been rallying all year long on haven demand and technical buying. Year-to-date, gold is up nearly 6%.

Citigroup believes gold could top $2,000 a troy ounce in the next 12 to 24 months, marking a new record high for the precious commodity. The effect of interest rates on precious metals isn’t fully understood, but the circumstances surrounding the Fed’s easing measures should be a boon to precious metals. Although the U.S. economy doesn’t face the risk of an imminent recession, the market’s favorite recession indicator flashed red on Tuesday, a sign investors were hedging their bets.

Gold’s Epic Rally Clears the Way for an Even More Insane Milestone, CCN, Feb 20