Citi raises its short-term outlook for gold to $3,500 per ounce

Citi has raised its short-term outlook for gold to $3,500 citing trade and geopolitical uncertainty. Analysts expect the metal prices to consolidate between $3,100 and $3,500. The forecast released on May 12 suggested the range of $3,000–3,300.

The bank upgraded its gold price target following Trump’s threats to impose 50% tariffs on the European Union from early June. 

However, Citi remains cautious on the metal price in the long term. Experts cite the potential for US GDP growth and lower equity risks as the midterms in the United States approach and the Federal Reserve cuts rates. Additionally, they note that households now own the most gold in half a century.

Demand for this precious metal remains robust, with approximately 0.5% of world GDP currently being spent on purchasing gold, a record reading in 50 years. Citi explains this by strong uncertainty increasing demand for safe haven assets and the absence of a real recession, especially in China and India, supporting demand for jewelry.