Citi has revised its short-term price target for gold upward to $3,500 per ounce, driven by escalating tariff tensions and heightened geopolitical uncertainty.
In a note released Sunday, the bank adjusted its forecast, expecting gold prices to trade within a range of $3,100 to $3,500 per ounce. This marks an increase from its May 12 estimate of $3,000 to $3,300 per ounce.
Despite this bullish near-term outlook, Citi remains cautious about gold’s long-term prospects. The bank highlights two main concerns: the possibility of growth and equity market risks easing as the U.S. midterm elections approach alongside anticipated Federal Reserve rate cuts, and the fact that household gold holdings have reached their highest level in fifty years.
Citi’s short-term price forecasts for platinum and palladium were left unchanged, at $1,050 and $900 per ounce respectively. The recent rally in platinum, the bank noted, appears largely driven by headlines, with sustainable gains depending on tangible improvements in end-use demand. Meanwhile, the palladium surge is seen as a potential trigger for producer hedging and increased speculator short selling.
The latest upward revision on gold followed Friday’s announcement of a fresh U.S. threat to impose a 50% tariff on imports from the European Union starting in June. However, later on Sunday, President Donald Trump agreed to extend the timeline for these tariffs by an additional month, delaying implementation until early July at the EU’s request.
Citi has maintained a generally bullish stance on gold since 2023. The bank first raised its target to $3,500 per ounce in April 2025, a level briefly surpassed on April 22 amid concerns over the Federal Reserve’s independence.
As trade tensions showed signs of easing, Citi predicted a consolidation phase for gold prices, lowering its short-term target to $3,150 per ounce—a level reached on May 15. Looking ahead, the bank expects gold to continue range-bound trading through the second half of 2025, with solid opportunities between $3,100 and $3,500 per ounce.
Gold demand remains robust, with current global spending on gold estimated at approximately 0.5% of world GDP—the highest ratio in five decades. Citi attributes this resilience to elevated uncertainty boosting investment demand and the absence of a significant recession in key markets such as India and China, which has helped sustain strong jewelry demand despite elevated prices.
