Citi: Negative outlook for the U.S. economy will drive gold prices moderately higher

ChainCatcher news, Citigroup has raised its gold price forecast for the next three months from $3,300 per ounce to $3,500 per ounce, with the expected trading range adjusted from $3,100-$3,500 to $3,300-$3,600, as it believes that the recent outlook for U.S. economic growth and inflation has worsened.

The bank stated: "Concerns about U.S. economic growth and tariff-related inflation will continue to intensify in the second half of 2025, coupled with a weakening dollar, which will drive gold prices moderately higher, reaching a new historical high." Citigroup also emphasized that weak U.S. employment data in the second quarter of 2025, increasing concerns about the credibility of the Federal Reserve and U.S. statistical data, and rising geopolitical risks related to the Russia-Ukraine conflict are contributing factors. Citigroup estimates that total demand for gold has increased by more than one-third since mid-2022. (Jin Shi)