Citi has raised its short-term gold price forecast to $3,500 per ounce, citing escalating geopolitical tensions and looming U.S. tariff increases on the European Union. The revised 0–3 month target reflects growing investor demand for safe-haven assets as the U.S. considers imposing an additional 50% tariff on EU imports starting in June.
Despite the bullish near-term projection, Citi remains cautious about gold’s long-term trajectory. The bank noted that the recent surge in platinum group metals (PGMs) may be outpacing underlying market fundamentals, suggesting a potential correction ahead.
Looking ahead to the second half of 2025, Citi expects gold prices to consolidate around current levels. Key market drivers include continued geopolitical uncertainty, intensifying U.S. fiscal concerns, and the resilience of major emerging economies such as China and India. The bank projects gold will trade within a range of $3,100 to $3,500 per ounce during this period, offering potential for strong range-trading opportunities.
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