Citi Research Raises Price Forecasts for Gold and Silver

Citi Research has raised its three-month forecast for gold prices, citing potential disruption in the U.S. labor market, expected Fed rate cuts, and ongoing physical and ETF purchases. The firm increased its previous three-month gold price forecast from $2,700 per ounce to $2,800, while setting its 6-12 month forecast at $3,000 per ounce. Additionally, Citi raised its 6-12 month silver price forecast from $38 to $40 per ounce. The bank noted that gold and silver have performed remarkably well despite the Fed's 50 basis point rate cut, weakening Chinese retail physical demand, and rising U.S. interest rates. It also mentioned the potential for gold prices to rise in the event of an escalation in Middle Eastern oil prices in the near term. Citi maintained a neutral-bullish position on platinum, setting a three-month price target at $1,025 per ounce and a 6-12 month target at $1,100 per ounce. However, Citi is bearish on palladium following recent price increases, with a three-month target of $1,000 per ounce and a 6-12 month target of $900 per ounce.