Gold worth has been predicted to succeed in $3,500 within the subsequent three months amid deteriorating U.S. {economic} indicators, rising inflationary pressures, and intensifying geopolitical dangers.
In a word launched Monday, Citi raised its three-month gold worth goal to $3,500 per ounce, up from its earlier estimate of $3,300.
It additionally widened its anticipated buying and selling vary to $3,300–$3,600, in comparison with the sooner projection of $3,100–$3,500.
“U.S. development and tariff-related inflation considerations are set to stay elevated throughout 2H’25, which alongside a weaker greenback, are set to drive gold reasonably increased, to new all-time highs,” Citi analysts said.
Citi’s bullish outlook comes amid indicators of {economic} pressure in america. The {bank} pointed to weaker labor market knowledge in Q2 2025, together with a pointy slowdown in nonfarm payroll development.
Based on current figures, U.S. employers added simply 73,000 jobs in July, following a downwardly revised 14,000 in June, a development that has revived expectations of a Federal Reserve charge lower in September.
The CME FedWatch device now locations the chance of a charge lower at 81%.
The greenback additionally weakened final week, additional supporting gold’s upward momentum. A softer greenback usually boosts demand for gold, which is priced in U.S. forex.
Citi additionally cited elevated geopolitical tensions, notably surrounding the continuing Russia-Ukraine battle, as a key driver of safe-haven demand.
As well as, President Donald Trump’s current imposition of steep tariffs on exports from main buying and selling companions, together with Canada, Brazil, India, and Taiwan, has stoked fears of extended commerce disruptions.
“The tariffs imposed final week on scores of nations are prone to keep in place fairly than be lower as a part of persevering with negotiations,” mentioned U.S. Commerce Consultant Jamieson Greer throughout an look on CBS’s Face the Nation on Sunday.
Citi estimates that gross gold demand has surged by over one-third since mid-2022, practically doubling costs by Q2 2025. The rally has been fueled by robust funding flows, reasonable central {bank} purchases, and resilient jewelry demand, even within the face of elevated costs.
At 0340 GMT on Monday, spot gold was buying and selling at $3,356.88 per ounce, inching nearer to Citi’s revised goal.
Gold’s repute as a safe-haven asset continues to shine amid {economic} uncertainty and world instability. With inflation considerations mounting and institutional confidence in U.S. statistics and Federal Reserve coverage waning, traders look like doubling down on the dear metallic.
