Citigroup: Negative outlook for the US economy will push gold prices moderately higher

According to Mars Finance, Citibank has raised its gold price forecast for the next three months from $3,300 to $3,500 per ounce, and adjusted the expected trading range from $3,100-3,500 to $3,300-3,600, as it believes the recent U.S. economic growth and inflation outlook have deteriorated. The bank stated: "U.S. economic growth and tariff-related inflation concerns will continue to intensify in the second half of 2025, and combined with a weakening dollar, will moderately push gold prices to new historical highs." Citibank also emphasized the weakening U.S. employment data in the second quarter of 2025, increasing concerns about the credibility of the Federal Reserve and U.S. statistical agencies, as well as rising geopolitical risks related to the Russia-Ukraine conflict. Citibank estimates that total gold demand has grown by more than one-third since mid-2022. (Jin Shi)