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U.S. lending titan Citigroup has raised its short-term price target for gold to $3,500 per ounce, citing recent tariff hikes and persistent geopolitical risks.
The bank now expects gold prices to consolidate in the range of $3,100 to $3,500 per ounce, marking an upward revision from its previous forecast of $3,000 to $3,300 announced on May 12.
As of Monday at 1400 GMT, spot gold hovers around $3,339 per ounce, trading near the upper end of Citi’s projected range.
Despite this bullish adjustment, Citi maintains a cautious long-term stance on gold, underlining two primary concerns. First, the approach of U.S. midterm elections and potential Federal Reserve interest rate cuts could reduce risks tied to growth and equities.
Second, American households are currently holding the highest volume of gold in over fifty years, which may limit additional demand in the long run.
The latest adjustment comes in response to heightened trade tensions between the United States and the European Union. On Friday, gold price forecasts were raised after Washington floated the possibility of imposing a 50% tariff on EU imports starting in June.
Although U.S. President Donald Trump later accepted a proposal from the EU to delay the tariffs by one month, the uncertainty continues to fuel demand for safe-haven assets like gold.
With trade tensions easing slightly, Citi had temporarily lowered its short-term gold forecast to $3,150 per ounce on May 15. However, the bank now anticipates that prices will continue to consolidate within the $3,100–$3,500 range throughout the second half of 2025, offering what it describes as strong opportunities for range-bound trading.
Citi notes that global demand for gold remains strong, with around 0.5% of the world’s gross domestic product currently allocated to gold, the highest level in 50 years.
The bank attributes this resilience to heightened uncertainty driving investment demand, along with stable jewelry consumption, especially in India and China, where no major economic slowdown has been observed despite elevated prices.
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