Citi had previously penciled their gold forecast for the next three months at $3,300. And in looking to the expected trading range, they had previously forecast that the precious metal will keep around $3,100 to $3,500. Now, they’re seeing that at $3,300 to $3,600. It’s an upgrade to their previous call, citing a deterioration in the US growth and inflation outlook in the near-term.
“US growth and tariff-related inflation concerns are set to remain elevated during H2 2025, which alongside a weaker dollar, are set to drive gold moderately higher, to new all-time highs.”
The firm also pointed out concerns about softer US labour market data in Q2, as well as worries surrounding “institutional credibility” with regards to the Fed and BLS.
As for factors underpinning gold, Citi notes that investment demand remains strong and moderate central bank buying will continue to keep the precious metal in a favourable position.
