Citi Research has recently made some significant changes to its gold price forecasts, as reported by Odaily. The research firm has raised its three-month forecast for gold prices due to several factors, including concerns about the U.S. job market, expected interest rate cuts by the Federal Reserve, and high demand for physical gold and ETFs. The new three-month estimate now stands at $2,800, up from the previous prediction of $2,700. Looking ahead, Citi has set a 6-12 month forecast for gold prices at $3,000, indicating a bullish outlook on the precious metal.
In addition to the adjustments made to gold price forecasts, Citi has also revised its 6-12 month forecast for silver prices. The new prediction for silver prices is $40, up from the previous estimate of $38. These changes in forecasts highlight Citi’s confidence in the precious metals market, especially in light of the ongoing economic uncertainties facing the global economy.
The increase in gold price forecasts by Citi Research comes at a time when investors are seeking safe-haven assets to protect their wealth amid economic concerns. Gold has long been considered a safe-haven asset during times of economic instability, as it tends to retain its value or even increase in price when other assets are underperforming. The anticipated interest rate cuts by the Federal Reserve are also expected to drive investors towards gold, as lower interest rates make non-yielding assets like gold more attractive.
Furthermore, the strong demand for physical gold and gold-backed ETFs is another key factor contributing to the bullish outlook on gold prices. Investors seeking exposure to gold without owning physical gold often turn to gold ETFs, which track the price of gold and provide a convenient way to invest in the precious metal. The combination of economic concerns, expected interest rate cuts, and high demand for gold has created a favorable environment for gold prices to rise in the coming months.
Overall, Citi Research’s decision to raise its gold price forecasts reflects the current market conditions and the potential for further price appreciation in the precious metals sector. Investors will be closely monitoring these forecasts and market developments to make informed decisions about their investment portfolios in the months ahead.
