Citi Research forecasts gold prices to drop to $2,500–$2,700 in second half of 2026

Commodities expert Max Layton from Citi Research predicts that gold's rally is coming to an end, with prices set to drop below $3,000 per ounce by the end of next year. He estimates that in the second half of 2026, the precious metal will trade in the range of $2,500 to $2,700.

Meanwhile, Layton projects average prices of $3,200 per ounce in the third quarter of 2025 before dipping to $3,000 in the fourth quarter. This year’s price surge, the expert notes, has been fueled by robust investor demand, with buyers accumulating bullion and coins as a hedge against slowing global GDP growth and market turbulence. However, Layton sees gold’s appeal potentially waning as the Fed moves toward rate cuts and the US economic picture improves.

Layton also highlights the new tax and spending bill currently before Congress, suggesting its passage could boost market confidence in US economic growth while reducing gold's investment demand.