Citi upgrades gold forecast amid headwinds for the US financial system

Citi had beforehand penciled their gold forecast for the subsequent three months at $three,300. And in trying to the anticipated buying and selling vary, that they had beforehand forecast that the dear steel will preserve round $three,100 to $three,500. Now, they’re seeing that at $three,300 to $three,600. It is an improve to their earlier name, citing a deterioration within the US progress and inflation outlook within the near-term.

“US progress and tariff-related inflation issues are set to stay elevated throughout H2 2025, which alongside a weaker greenback, are set to drive gold reasonably greater, to new all-time highs.”

The agency additionally identified issues about softer US labour market knowledge in Q2, in addition to worries surrounding “institutional credibility” as regards to the Fed and BLS.

As for components underpinning gold, Citi notes that funding demand stays sturdy and average central financial institution shopping for will proceed to maintain the dear steel in a beneficial place.

This text was written by Justin Low at investinglive.com.