At 7-year high, gold eyes $1900 on stimulus-driven liquidity

At 7-year high, gold eyes $1900 on stimulus-driven liquidity

Gold futures rallied for the fifth consecutive day, surging above $1,700 an ounce to the highest since 2012, underpinned by ample liquidity in the wake of massive economic stimulus packages initiated worldwide to contain coronavirus epidemic as precious metals analysts forecast the yellow metal to hit $1900 an ounce in weeks.. On Tuesday, as investors weighed the economic fallout from the pandemic and the prospect of more stimuli, gold widened the spread over spot prices.. Futures rallied as much as 2.9 per cent to $1,742.60 an ounce on the Comex, rising to a seven-year high and traded at $1,714.70 at 6:22am in London.. Spot gold was 0.1 per cent lower at $1,659.53 an ounce, putting the spread between London and New York prices at more than $50.. On a technical basis gold has formed an inverse head and shoulders formation with Tuesday's move in gold futures breaking strongly above the shoulders indicating higher pricing ahead.. The rally in gold futures could move as high as $1800 in the next two weeks.". Analysts at Citibank forecast the yellow metal at $1700 an ounce in a 1-3 month horizon and at $1900 in six to 12 months.. �In India, gold traded at