Citigroup Caught Again: Updated! – Gold Goliath

Posted on :Aug 18, 2015

Updated 8-20-15

Gold prices are posting solid gains in early a.m. Thursday trading, riding a 4 week high as global stock markets remain under selling pressure. Gold last reported a.m. is $1151.90 and silver is $15.56

Citigroup say’s gold should average around $1,090 an ounce in the third quarter and $1,050 in the fourth, calling for weakness due to macroeconomic conditions.

After moving lower for most of the third quarter, gold bounced  last week when China devalued its currency, prompting safe-haven buying and short covering. Citi said, it looks for the Federal Open Market Committee to “look past international developments” and still tighten interest rates as early as September.

Citi Said, “Certainly conventional wisdom dictates that Fed tightening should be negative for bullion, though history does not always confirm this when considering gold’s performance during previous Fed tightening cycles.

The bank lowered its overall annual average gold-price forecast this year to $1,140 an ounce and trimmed its 2016 outlook to $1,050.

Silver is seen averaging $14.90 and $14.60 this quarter and next. The full-year and 2016 forecasts are $15.70 and $14.50, respectively.

How much credit should we give Citi depends on which side of the mouth they are speaking out of. Citi is one of the U.S. “Big Six” banks, and has tremendous leverage in Fed protocol, answering only to JP Morgan.

It’s also important to remember that Citigroup has just agreed to pay $180 million in fines for hedge fund charges, according to the SEC. Citi, will gladly pay the small, “doing business” fine in exchange for continuing to take advantage of markets across the board.

According to the SEC, Citigroup made false and misleading representations to investors in the ASTA/MAT fund and the Falcon fund, which collectively raised nearly $3 billion in capital from roughly 4,000 investors before they collapsed. The SEC added that even as the funds were collapsing, Citigroup accepted nearly $110 million in additional investments.

Where gold and silver prices will be tomorrow, next month or next year is anyone’s guess. What we do know is U.S. debt will continue to balloon and China will continue attacking U.S. dollar supremacy; with the help of “our” allies.

Regardless, gold and silver remain to be what they always have been, insurance against paper asset losses.

Give Gold Goliath a call and let’s begin the process of protecting our assets while they are still, our assets.

Call 1-800-577-3195 Ext. #1 to speak with a sales consultant.

Gold Goliath is not your typical gold dealer.

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