Citibank is bearish on gold: Due to the worsening US economy and the impact of tariffs, gold will rise to record highs in the short term.

Citigroup has adjusted its bearish forecast for gold, stating that due to the deterioration of the U.S. economy and the impact of tariffs driving inflation, gold will rise to record highs in the short term. Citigroup analysts, including Max Layton, stated in a report on Monday that in the next three months, the price of gold will fluctuate between $3,300 and $3,600 per ounce, partially due to the average level of U.S. import tariffs being higher than the previously expected 15%. This is in stark contrast to Citigroup's view in June, when the bank predicted that gold would fall below $3,000 per ounce in the coming quarters. The analysts at Citigroup said, "Due to high interest rates over the past three years, the market has been concerned about the U.S. economy entering a recession, leading to buying gold as a hedge against downside risks. Considering the largest trade tariff plan introduced by Trump in a century, this concern may have further intensified over the past six months." After a significant rise at the beginning of the year, and breaking through the historical high of $3,500 per ounce in April, the price of gold has entered a consolidation phase in the past few months. Citigroup's shift has aligned their view with more optimistic analysts at Goldman Sachs and Fidelity International. Despite a more positive outlook on the price of gold, Citigroup analysts still stated that their previously forecasted short-term price range ($3,150 to $3,500 per ounce) has performed well, noting that the sideways movement of gold in recent months has confirmed this assessment. They also reiterated their more cautious stance on gold prices in 2026 as investors have gained more certainty about the potential stimulus measures from trade and the "Build Back Better Act," and the pause in U.S. job growth may come to an end.