Friday, May 30th 10:10 AM IST

Gold to avg $1,337 an ounce in H2 2014; $1,365/Oz in 2015: Citi Research

# COMEX Gold  

Citi Research looks for the gold price to average $1,337 an ounce in the second half of the year, then rising to $1,365 in 2015. In particular, Russia-Ukraine tensions may help provide a lift.

NEW YORK (Bullion Street): Citi Research looks for the gold price to average $1,337 an ounce in the second half of the year, then rising to $1,365 in 2015. In particular, Russia-Ukraine tensions may help provide a lift.

According to Citi, it looks for gold prices to improve from current levels in the second half of 2014 but overall appears to be more pessimistic toward the outlook for gold-mining equities.

Gold rose more than 15% from the start of the year through mid-March, lifted by worries about emerging-market financial conditions, weaker U.S. economic data blamed in part by a severe North American winter, continued strong Chinese demand for physical gold, and geopolitical tensions surrounding Russia and Ukraine.

However, the March meeting of the Federal Open Market Committee effectively ended the gold party, with the metal declining since as tapering of asset purchases continued.

The question is whether the re-emergence of the U.S. focus points to a new sustained downtrend for gold while geopolitical and EM risks remain? We believe the answer is no.

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