American multinational banking and financial corporation Citi on Monday raised its gold price forecast for the next three months from $3300 to $3500 per ounce, as well as the expected trading range from $3100 to $3500 to $3300-3600, believing that the short-term prospects for US economic growth and inflation will worsen, writes UNN with reference to Reuters.
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"Concerns about US economic growth and tariff-related inflation will remain high in the second half of 2025, which, along with a weakening dollar, should lead to moderate gold price growth and new all-time highs," the bank said.
Last week, US President Donald Trump imposed high tariffs on exports from dozens of trading partners, including Canada, Brazil, India, and Taiwan.
Trade Representative Jamison Greer said on CBS on Sunday that the tariffs imposed last week on dozens of countries are likely to remain in place rather than be reduced as part of ongoing negotiations.
Last week, the dollar weakened after US non-farm payrolls increased by 73,000 last month after a 14,000 rise in June, a downwardly revised figure. This revived hopes for a Fed rate cut in September. According to the CME FedWatch tool, markets now price in an 81% chance of a rate cut.
Citi also notes weaker US employment data in the second quarter of 2025, which increases concerns about confidence in the institutional system regarding the Fed and US statistics, as well as increased geopolitical risks associated with Russia's war against Ukraine.
Gold, traditionally considered a safe-haven asset during political and economic uncertainty, generally thrives in low-interest rate environments.
According to Citi's estimates, gross gold demand has increased by more than a third since mid-2022, and prices for the second quarter of 2025 have almost doubled.
Steady gold demand has been driven by strong investment demand, moderate central bank purchases, and resilient jewelry demand despite rising prices, the bank added.
Gold prices edged lower on Monday as investors took profits after a sharp rally in the previous session on weaker-than-expected US employment data.
Spot gold prices fell 0.1% to $3360.62 per ounce at 04:32 GMT (07:32 Kyiv time). Gold bullion rose more than 2% on Friday. Meanwhile, US gold futures rose 0.4% to $3412.80.
Spot silver prices rose 0.2% to $37.10 per ounce, platinum fell 0.6% to $1307.52, and palladium fell 0.6% to $1201.44.
Global demand for gold increased by 3% in six months31.07.25, 10:42 • [views_3833]