Citigroup predicts gold prices will hit a record $3,000 an ounce within three months due to US President Donald Trump’s trade policies and geopolitical tensions. Analysts believe investors are seeking safe-haven assets amid concerns of slower economic growth and high interest rates. The bank also expects central banks from emerging economies to boost gold holdings to support their currencies.
Gold prices have surged in recent days, with the metal surpassing $2,800 an ounce. Citi upgraded its three-month price target for gold from $2,800 to $3,000 per ounce. Analysts say investors will turn to physical gold and exchange-traded funds as a safe-haven asset during uncertain times.
The bank’s analysts predict that the risk of US tariffs on other nations could lead to higher gold prices. A Russia/Ukraine peace deal or confirmation of whether gold would be exempt from broad tariffs could provide a buying opportunity in the next 2-3 months.
Citi raised its average price target for the year to $2,900 an ounce, while leaving its 6 to 12 month price target unchanged at $3,000.
Source: https://finance.yahoo.com/news/gold-steady-near-record-high-003402782.html