Citi Predicts Gold Dip Below $3K as Rally Fades on Improving Economy and Fed Cuts

• Gold’s recent rally has likely peaked. Citi expects prices to fall below $3,000 per ounce in late 2025 or early 2026 .

• They see two main reasons:

  1. Less demand and more stability ahead – as the global economy recovers and trade uncertainty eases, investors may shift away from gold.

  2. Fed rate cuts – ironically, cutting interest rates could signal a stronger economy and reduce gold’s appeal as a safe-haven.

• Citi’s new forecasts:

  • In the next 3 months: around $3,300/oz, down from prior $3,500 

  • In 6–12 months: around $2,800/oz, down from $3,000 

• Their “base case” (60% probability): prices hover between $3,100–$3,500 through mid‑2025, then fall under $3,000.

• In a best-case (20%) scenario, tensions could push gold past $3,500, while in a worst-case (20%), it could drop toward $2,500–$2,700 with a strong economy and fading risks 

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What This Means for Gold

• Short-term (3 months): Gold could dip modestly from current highs (~$3,385/oz) to around $3,300.

• Mid-term (6–12 months): If global growth picks up and Fed cuts rates, gold could fall further toward $2,800, possibly even lower.

• Watch-the triggers:

  • Easing geopolitics or trade tensions → Gold down.

  • Strong global growth and rising investment confidence → Gold down.

  • Renewed crisis, inflation, or strong safe-haven demand → Gold up.