Citi and Fitch BMI anticipate end of gold's record price rally

Analysts from Citi, Motilal Oswal, and Fitch BMI warn that gold prices may have exhausted their growth potential following an extended rally. Over the past year, the precious metal's value has surged by more than 40%. The asset is unlikely to sustain similar growth rates further, according to the research firms' analysts. Moreover, shifting macroeconomic conditions could undermine its status as a safe haven, The Times of India notes.

Gold has demonstrated remarkable growth in recent years. From January 2022 to present, bullion prices have soared by approximately 86%. BMI forecasts the asset's value will gradually decline but will likely remain above pre-pandemic levels. On average, the yellow metal is projected to trade around $2,720 per ounce between 2025 and 2029. In 2019, the average price stood at $1,393.

Citi predicts gold prices will return to the $2,500–$2,700 range by the second half of 2026. Potential correction triggers include diminished investment appeal, favorable global growth projections, and potential interest rate cuts in the United States.