Citigroup Lifts Gold Price Target to $3,500 Amid Global Tensions
Geopolitical unrest and tariff uncertainty fuel bullish gold forecast
New Forecast from Citigroup
Citigroup analysts have raised their three-month price target for gold bullion by 11%, citing elevated market instability and global risk factors.
- The new target stands at $3,500 per ounce, up from the previous $3,150 estimate.
- Analysts point to lingering U.S. tariff threats and budget concerns as key catalysts for increased demand for safe-haven assets like gold.
Global Risk Factors Support Bullish Outlook
Citigroup also flagged non-U.S. geopolitical risks as major drivers of their upward revision.
- The ongoing war in Ukraine and rising Middle East tensions were named as reinforcing gold’s appeal.
- These factors, combined with economic unpredictability, are likely to keep investors hedged in precious metals.
Market Reaction & Price Movement
The revised forecast comes after a short-term pullback in gold prices.
- On May 26, spot gold dropped nearly 1% to $3,341.70, following President Trump’s decision to delay a 50% EU tariff from June 1 to July 9.
- This announcement led to a stock market rally and modest retreat in bullion.
- Still, gold remains up over 25% year-to-date, having briefly broken the $3,500 mark earlier this spring.
Gold-Tracking ETF GLD in Focus
The SPDR Gold Shares (GLD) ETF, which directly tracks the spot price of physical gold, has mirrored the metal’s strength.
- GLD has gained 16.92% over the past three months, reflecting broader investor interest in defensive assets during global uncertainty.
