Citi Elevates Short-Term Gold Forecast

Gold has recently increased its upward momentum, reaching new highs. Uncertainty in the global economy and geopolitical risks have boosted demand for gold, while global financial institutions are forecasting a continuation of this rise in the short term.

Citi has raised its gold price predictions, updating its three-month forecast to $2,800 per ounce. The bank cited potential weakness in the U.S. labor market, the Fed's interest rate cut cycle, and increased ETF purchases as reasons for this decision. Additionally, Citi's 6- to 12-month gold price forecast is set at $3,000. For silver, Citi updated its forecasts to $40 per ounce over the same period, up from the previous estimate of $38.

Mohammed El-Erian, former CEO of PIMCO, highlighted the recent surge in gold prices. He stated that Western countries should pay more attention to the rise in gold prices. Despite losing its relationship with traditional factors, gold continues to rise, reflecting growing interest in alternatives to the dollar-based financial system. El-Erian also noted that gold reaching record levels has gained momentum despite geopolitical uncertainties.

At the start of the new week, gold began trading at $2,723, reaching a new high of $2,740. After profit-taking from the peak levels, it ended the day at $2,719, slightly down, but started the new day with an upward trend, hovering around $2,730.

Domestically, gold in grams set a record at 3,019 TL in previous sessions before closing the day at 2,996 TL. Beginning the day with a renewed upward trend, gram gold continues its positive movement, trading at 3,011 TL in the morning hours.