Home / Business and Economy / Citi Forecasts Gold to Reach Record $3,600 by Q2 2025
Citi Forecasts Gold to Reach Record $3,600 by Q2 2025
4 Aug
Summary
- Citi raises gold price forecast to $3,500 per ounce
- Weaker U.S. dollar and elevated inflation to drive gold higher
- Geopolitical risks and Fed credibility concerns also support gold
According to the latest report, investment bank Citi has significantly increased its gold price forecast for the coming months. The bank now expects gold to reach $3,500 per ounce over the next three months, up from its previous forecast of $3,300. Additionally, Citi has revised the expected trading range for gold to $3,300-$3,600, up from $3,100-$3,500.
The primary drivers behind Citi's bullish outlook on gold are the deteriorating U.S. growth and inflation outlook, as well as a weaker U.S. dollar. The bank believes that these factors, combined with elevated geopolitical risks and concerns over the Federal Reserve's credibility, will continue to support gold prices and drive them to new all-time highs by the second quarter of 2025.
Citi's analysts also highlight that the demand for gold has risen by over one-third since mid-2022, with strong investment demand, moderate central bank buying, and resilient jewelry demand contributing to the surge in prices. The bank expects this trend to continue, leading to a near-doubling of gold prices by the second quarter of 2025.
