Citigroup adjusts expectations, ‘Goudprijs will break new records this year’

The gold price today rose to $ 3,365 per ounce, and that is possibly just the beginning. According to Citi, the price can amount to $ 3,500 in the coming three months. The American investment bank mentions a combination of economic uncertainty, a weaker dollar and political tensions as the main causes, says Reuters.

Citi screws gold forecast to $ 3,500

Citi increased its expectation for the gold price from 3,300 to $ 3,500 per ounce. The expected trading range was also adjusted from 3,100 – 3,500 to $ 3,300–3,600 dollars. According to the report, sentiment around the US economy has deteriorated in the second half of 2025.

An important driver is the recent trade policy of President Donald Trump. Last week he announced new, hefty rates at exports from, among others, Canada, India, Brazil and Taiwan. According to American trade representative Jamieson Greer, these rates will remain in force for the time being.

In addition, there were disappointing labor market figures. In July only 73,000 jobs were added, while in June it was only 14,000. The market is now counting on an interest rate reduction in September, with a chance of 88%, according to the CME Fedwatch Tool.

“The concerns about American growth and rates continue, which, together with a weak dollar, drives the gold price to new record highs,” said Citi.

New records in sight due to interest, dollars and unrest

In addition to economic factors, geopolitical risks also play a role. The situation in Ukraine remains uncertain and according to Citi the credibility of the Federal Reserve decreases due to persistent criticism of the reliability of economic data.

Gold benefits from that uncertainty. As a classic ‘Safe Haven’ it is popular when interest rates are falling and inflation rises. According to Citi, the total demand for gold has increased by more than a third since mid -2022. As a result, the gold price has almost doubled since then.

This increase is mainly due to investors looking for certainty. Central banks also continue to buy, although that is to a modest degree. With the interest rate forecast, the weak dollars and geopolitical worries in the background, according to Citi it seems only a matter of time for gold to achieve new records.