Citi: Negative U.S. Economic Outlook to Moderately Boost Gold Prices

According to a report by Jinse Finance, Citigroup has raised its three-month gold price forecast from $3,300 per ounce to $3,500 per ounce, and adjusted its expected trading range from $3,100–$3,500 to $3,300–$3,600, citing a deteriorating outlook for U.S. economic growth and inflation. The bank stated: “Concerns over U.S. economic growth and tariff-related inflation are expected to intensify in the second half of 2025. Along with a weakening U.S. dollar, this will moderately push gold prices higher, reaching new historical highs.” Citigroup also emphasized that weaker U.S. employment data in the second quarter of 2025, growing doubts about the credibility of the Federal Reserve and U.S. statistical agencies, and rising geopolitical risks related to the Russia-Ukraine conflict are all contributing factors. Citigroup estimates that since mid-2022, total gold demand has increased by more than one-third. (Jin10)