Citi Sets Gold Price Target: How High Could It Climb This Quarter?
The bank added that gold prices have fallen more than $100 per ounce since it lowered its 0–3 month price target from $3,500 to $3,300.
Quick overview
- Citi Bank predicts the gold market deficit will peak in Q3, followed by a decline due to reduced investment demand.
- The bank expects gold prices to stabilize between $3,100 and $3,500 per ounce in Q3, influenced by easing geopolitical tensions and better global growth.
- Citi has revised its short-term price target for gold down to $3,300, noting a drop of over $100 per ounce since its previous forecast.
- Looking ahead, Citi forecasts gold prices may fall to the $2,500–$2,700 range per ounce by the second half of 2026 and advises gold producers to hedge against potential price declines.
Citi Bank expects the gold market deficit to peak during the third quarter, with the market set to weaken afterward due to a decline in investment demand.
On Monday, Citi said it anticipates gold to consolidate between $3,100 and $3,500 per ounce in Q3, as prices ease amid de-escalating geopolitical tensions in the Middle East and improving global growth prospects.
“We expect continued price consolidation (…) and maintain our view that we may have already seen the peak at $3,500/oz at the end of April, as the gold market deficit is either peaking now or will soon,” Citi stated in the note.
The bank added that gold prices have fallen more than $100 per ounce since it lowered its 0–3 month price target from $3,500 to $3,300 in its mid-June Q3 outlook. The metal is currently trading just below that revised target.
Gold Outlook: Citi’s Expectations
Citi expects the gold market deficit to reach its highest point during the third quarter and anticipates a weakening trend afterward, driven primarily by softer investment demand.
Looking further ahead, the bank projects that gold prices could drop back to the $2,500–$2,700 range per ounce in the second half of 2026. Citi “strongly recommends that gold producers hedge against price declines from current levels.”
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