Citi: Gold Prices to See Near-Term Surge

SEATTLE (Scrap Monster): Citi Research predicts huge surge in gold prices in the near term.

The prices of the yellow metal are projected to touch $3,000 per ounce over the next six to eighteen months period. This is nearly 25% above the current spot price of gold. Also, it expects gold prices to frequently test and breach levels of $2,500 per ounce during the latter half of 2024. It must be noted that gold prices have witnessed nearly 20% over the past one year.

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The research note released by Citi noted that the recent gold price rally has been supported by geopolitical tensions across the globe. A sharper shift toward a risk-off environment could provide further push to gold prices. However, it anticipates a likely pullback in bullion prices in May or June this year. There exists strong buying support for gold at around $2,200 per ounce levels, it said.

Citi Research updated its baseline gold price forecasts, increasing the 2024 estimate by 6.8% to $2,350 per ounce and 2025 estimate by 40% to $2,875 per ounce. A cycle of interest rate cuts by the U.S. Federal Reserve and a consequent rally in Treasury markets could act as key drivers to push the gold prices to $3,000 per ounce levels before end-2025.