Gold may surge ever higher after posting a 6-year high earlier this week.

A spiralling standoff on trade between the US and China, and gloomy analysis from some of the world’s leading economists that a global recession is imminent, have sent investors flocking to the traditional safe haven of gold.

Now, Citigroup is piling on the positive commentary surrounding the precious metal, saying in a note that recent highs could be just the start of a prolonged extension, citing key technical levels that the bank is monitoring.

Shyam Devani, senior technical strategist at Citigroup, said “It is only a matter of time before a significant bullish break occurs.”

Meanwhile, earlier this month, Bloomberg quoted a Goldman Sachs analyst as saying that portfolio managers still “under-own gold” and that, because of fears of economic growth, “gold could go even higher.”

A third bank, Merrill Lynch, has spoken of a potential climb towards $2,000 within two years, while UBS’ three-month forecast has the price of gold at $1,600.

As trade tensions escalate and economic growth slows, investors are nervous about risk assets such as equities.

Citigroup told Bloomberg, “Equity markets continue to look vulnerable, especially given the deeper inversion of the US yield curve”.

Gold is up around 20% this year.

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