With Citi predicting prices could soar to $3,500 per ounce within the next three months, the global gold market is bracing for a historic rally.
The NewsChronicle has learnt that this new estimate represents a major rise from the bank’s earlier forecast of $3,300 and comes against increasing indications of economic problems in the United States, persistent inflation pressures, and rising geopolitical instability.
Citi analysts also increased their anticipated trading range for the precious metal, now expecting it to fluctuate between $3,300 and $3,600 in the near term, compared to the previously expected band of $3,100 to $3,500.
The bank’s most recent market update claims that investor mood back toward gold is being driven by lower-than-expected U.S. labor statistics and a slowing path of growth. While June figures were revised downwards to only 14,000, TNC knows that nonfarm payroll growth in July was a meager 73,000 jobs, far below projections. These changes have fanned rumors that the U.S. Federal Reserve may soon choose a rate cut to boost the economy.
Data from the CME FedWatch tool currently suggests an 81 percent chance of a rate cut in September, a move that may cause the dollar to fall even further and drive more investors towards gold. Usually, a weaker dollar raises gold values as it lowers the cost of the metal for holders of other currencies.
Beyond financial signals, gold’s position as a safe-haven asset has been strengthened by growing geopolitical tensions.TNC found that worries about ongoing world commerce disturbance are being fueled by the Russia-Ukraine war as well as fresh tariffs imposed by President Donald Trump on exports from India, Canada, Brazil, and Taiwan.
Contributing to the bullish attitude is an amazing rise in worldwide gold consumption.Citi predicts that demand has climbed by more than 35 percent since mid-2022, almost doubling gold values in less than two years. Investments are still significant; central banks and the jewellery industry have ongoing interest in the precious metal despite their high value.
In the global spot market, gold traded at $3,356.88 per ounce as of Monday morning, almost closing in on Citi’s adjusted goal.
Gold seems to be returning its sparkle as geopolitical dangers show no indications of abating and financial uncertainty deepens. The NewsChronicles understands the next months could be crucial as the market keeps a careful eye for what could be a fresh all-time high in gold’s long and storied history.
