Citi: Gold rally to US$2,000 would be bad news for diamonds


MOSCOW: Citigroup Inc’s prediction that gold could rally above US$2,000 an ounce in two years would be negative for another precious and shiny commodity: diamonds, according to Barry Ehrlich, an analyst at the bank.

Citi’s bullish scenario for gold is based on drivers including the prospect of the Federal Reserve cutting interest rates to zero, rising risks of a global recession and heightened geopolitical tensions.

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