Citibank predicts that the price of gold will fall below $3,000 per ounce in the coming seasons.

Citigroup stated that with the record-breaking rally losing momentum, it is expected that the price of gold will fall below $3,000 per ounce in the coming quarters, marking the end of one of the most remarkable rallies in the commodity market. Analysts like Max Layton pointed out in their report that their research indicates that by the second half of 2026, the price of gold will return to around $2,500 to $2,700 per ounce. This decline may be attributed to weakening investment demand, improving global growth prospects, and rate cuts by the Federal Reserve. The escalating trade policy of US President Trump and the Middle East crisis have stimulated safe-haven demand, leading to a 30% surge in gold price this year, with the last record high set in April. Concerns over US deficits and assets, as well as continued purchases of gold by central banks around the world for diversification of reserves, have also supported the rise in gold prices. They anticipate that investment demand for gold will weaken towards the end of 2025 and 2026, especially as the focus turns to the US midterm elections. Furthermore, they believe that the Federal Reserve has ample room to adjust policy from restrictive to neutral.