Gold price growth: Citigroup forecasts

The financial giant Citigroup predicts that the price of gold could reach a record $3000 per ounce over the next 6-18 months. This is predicted due to an increase in investor inflows to this precious metal. Bloomberg reports.

Citigroup analysts have raised their average price estimate for 2024 to $2350, and significantly revised their forecast for 2025, raising it by 40% to $2875.

According to their forecasts, in the second half of 2024, the gold price will systematically test and cross the $2500 level. Today, gold is trading at around $2387.

The rise in gold prices is the result of a number of factors, such as conflicts in the Middle East and the dispute between Russia and Ukraine, central bank purchases, and consumer demand in China.

Other banks, such as Goldman Sachs and UBS, have also expressed their forecasts. Goldman Sachs expects the end of this year to bring the gold price to $2700, while UBS foresees a rise to $2500.

According to Citigroup, gold will get a boost from rising flows from money managers. The beginning of the Federal Reserve's interest rate cut cycle (or a possible recession scenario) in 2025 will also stimulate investment demand.