Gold has been on a tear recently, hitting a new all-time high of $2,882 and showing no signs of slowing down.
After surging 27% in 2024, prices have already climbed another 10% this year, outpacing all major investments.
Citi has now raised its short-term forecast, predicting gold could reach $3,000 per ounce within the next three months, up from its previous target of $2,800. This follows a similar upgrade from UBS earlier in the week.
The ongoing rally is being driven by real-world factors. Central banks, especially in emerging markets, have been buying up gold to diversify away from the US dollar.
At the same time, concerns over global economic growth and geopolitical tensions, including the possibility of trade wars, are making gold more attractive to investors looking for stability.
Gold-backed investment funds, known as exchange-traded funds (ETFs), and over-the-counter markets are also seeing increased demand as people look for safe places to park their money.
Citi expects this trend to continue, keeping its 12-month forecast steady at $3,000 per ounce and slightly raising its average price estimate for 2025.
Looking ahead, potential developments such as a peace deal between Russia and Ukraine could impact gold’s momentum, but for now, the market remains strong. Whether you're an investor or just watching from the sidelines, gold’s rise is a trend worth following.
Early on, gold was up $10.07 at $2,872.28.