Citi does not rule out gold rising to $3000

Gold may rise to $3,000 in the next year and a half under the influence of certain factors, analysts at Citi said. These include a sharp increase in demand for the precious metal from central banks, a deep global recession or stagflation, said Aakash Doshi, head of commodities research at the bank, in an interview with CNBC.

The strongest catalyst would be an intensification of the trend away from the dollar exhibited by emerging market central banks, which has exacerbated distrust of the U.S. currency. Against this backdrop, regulators may decide to double their gold purchases. Now it is at the level of about $2030 per troy ounce, but with such a surge of interest quotations may soar by 50%. Today, demand for gold is mainly driven by the jewelry industry, but the above scenario could sideline it, Doshi said.

A deep global recession could also cause the precious metal to rise to $3,000 - in this case, the Federal Reserve would rapidly cut rates, and gold prices, which are inversely dependent on them, would begin to rally on this background.