Gold price target lifted to $3,500 due to Chinese insurers’ buying and safe-haven demand. Citi Research raised its three-month forecast to $3,500 per ounce from $3,200, citing fresh gold buying from Chinese insurers and rising safe-haven flows amid tariff risks. Analysts predict a rare physical deficit in the market, requiring prices to rise to clear stockholders’ holdings. China’s recent move to let insurers allocate 1% of assets to gold is expected to generate annual demand of around 255 metric tons, boosting imports over the coming months. The bank also sees a strong chance for producers to lock in healthy margins due to production costs and dollar weakness.
Source: https://www.reuters.com/markets/commodities/citi-raises-gold-price-target-next-3-months-3500-per-ounce-2025-04-17