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

Citigroup’s prediction that gold could rally above $2 000/oz 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.