Quick overview

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Citi, the American multinational lender, reaffirmed its short-term gold price target at $3,500 an ounce, citing the recent increase in tariffs and significant geopolitical risks. According to a note released on Sunday, the bank raised its estimate of gold prices from $3,000 to $3,300 per ounce on May 12 to a range of $3,100 to $3,500 per ounce.

The U.S bank maintains its long-term cautious approach to gold despite the upgrade. The bank cites two main explanations: the potential for growth and associated equity risks diminishing as U.S. households now own more gold than they had in fifty years, the Federal Reserve lowers interest rates, and the midterm elections draw near.

The short-term price targets for palladium and platinum remain $1,050 and $900 per ounce, respectively. Citi believes that a sustained upward trend requires a genuine improvement in end-use demand, and the recent platinum rally is viewed as headline-driven.

The palladium rally represents yet another opportunity, according to the bank.

Citi has maintained a bullish outlook on gold, initially increasing its target price to $3,500 per ounce in April 2025. On April 22, concerns about the Federal Reserve’s independence caused the price of gold to surpass its previous record.

Citi called for a period of consolidation for gold prices as trade tensions began to de-escalate and lowered its short-term target to $3,150 per ounce, which was reached on May 15. In the second half of 2025, Citi predicts that gold prices will continue to stabilize at their current levels.