Citi Lifts Gold Short-Term Outlook On Growth Concerns

Citigroup Inc. revised its forecast for gold, with analysts now predicting bullion will rally to a record high in the near term due to a worsening US economy and inflation-boosting tariffs.

The precious metal will trade between $3,300 and $3,600 an ounce over the next three months, due in part to US import levies averaging higher than the anticipated 15%, analysts including Max Layton said in a note on Monday. That contrasts with Citi’s view in June, when the bank saw prices consolidating between $3,100 to $3,500.

“The market has been concerned about a US recession due to high interest rates for the past three years, buying gold to hedge the downside risks,” they wrote. “This fear has likely only increased over the past six months given President Trump’s largest-in-a-century trade tariff agenda.”

After rallying sharply in the early part of the year and hitting a record high above $3,500 an ounce in April, gold has been in a holding pattern for the last few months as the market seeks fresh direction. Citi’s change of heart brings it into line with other more bullish analysts at Goldman Sachs Group Inc. and Fidelity International.

Despite their more bullish outlook, the Citi analysts said their previous near-term price forecast of between $3,150 and $3,500 an ounce had “worked out well”, pointing to recent months of consolidation. They also reiterated a more cautious stance on gold in 2026, citing a possible end to the pause on US hiring now that investors have more certainty on trade and possible stimulus from the One Big Beautiful Bill Act.