Gold is expected to reach $3,000 per ounce over the next six to 18 months on increasing investor inflows amid expectations that the Federal Reserve will eventually cut interest rates, Citigroup Inc. said.
Analysts led by Aakash Doshi raised their estimate for average prices in 2024 to $2,350 and revised their 2025 prediction by 40% to $2,875.
Trading will regularly test and breach $2,500 in the second half, the bank added.
Analysts further indicated that inflows into gold-backed exchange-traded funds (ETFs), which have been largely absent in recent years, will facilitate the path to reaching the $3,000 level.
They believe that the beginning of the Fed’s rate-cutting cycle or a possible recession scenario in 2025 will provide more momentum for demand for investment.
These expectations come after Goldman Sachs raised its estimate of gold prices by the end of the year to $2,700, while UBS Group expects the price to reach $2,500.
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