Citibank has updated its short-term gold price forecast, raising it to $3,500 per ounce amid increasing market volatility and global demand.
Citibank's Gold Price Forecast
Citibank has raised its short-term gold price target to $3,500 per ounce. Max Layton, Citi's Global Head of Commodities, commented, *"Gold prices could reach up as high as $3,500 an ounce,"* representing a potential 33% rally across the year. Analysts highlight that higher prices are necessary to incentivize stockholders to sell.
Demand Surge Impacting Markets
The forecast is a response to escalating tariffs and heightened economic uncertainty, prompting investors to turn to gold. Support for this demand comes from Chinese insurers and emerging market central banks, contributing to demand that exceeds mine supply.
Gold Prices and Cryptocurrency Markets
The rise in gold demand may also impact cryptocurrency markets. Coincu analysts indicate that heightened demand for gold could push investors towards digital assets, promoting further advancements in decentralized finance.
Shifts in gold price forecasts reflect a broader economic trend where safe-haven assets are increasingly important in times of geopolitical uncertainty.
