Citigroup: Negative US economic outlook will drive gold prices to moderately rise

According to a report by Golden Finance, Citigroup has raised its gold price forecast for the next three months from $3300 per ounce to $3500 per ounce, and its expected trading range from $3100-3500 to $3300-3600 per ounce, as it believes that the outlook for US economic growth and inflation has deteriorated in the near future. The bank said: "US economic growth and tariff related inflation concerns will continue to intensify in the second half of 2025. Together with the weakening of the US dollar, the gold price will moderately rise to a record high." Citi also stressed that the US employment data will weaken in the second quarter of 2025, and the institutional credibility of the United States Federal Reserve and US statistics will be more worried, as well as geopolitical risks related to the Russia-Ukraine conflict will increase. Citigroup estimates that the total demand for gold has increased by over one-third since mid-2022. (Golden Ten)