Citibank Raises Short-Term Gold Price Target to $3,500 – Coincu

Gold prices could soon see new highs as Citibank adjusts its short-term target to $3,500 per ounce, citing increased market volatility and global demand. This adjustment took place on May 26, 2023, as reported by BlockBeats News.

Citibank’s revised target reflects crucial shifts in the precious metals market, affecting both traditional and cryptocurrency markets. Additionally, the decision underscores a broader trend of safe-haven asset inflation amidst geopolitical tensions.

Citibank’s $3,500 Gold Target Amid Geopolitical Tensions

Citibank has raised its short-term gold price target to $3,500 per ounce. Max Layton, Citi’s Global Head of Commodities, commented, “Gold prices could reach up as high as $3,500 an ounce,” representing a potential 33% rally across the year. Analysts highlight that higher prices are necessary to incentivize stockholders to sell.

The forecast is a response to escalating tariffs and heightened economic uncertainty, prompting investors to turn to gold. Chinese insurers and emerging market central banks are major buyers, contributing to demand that exceeds mine supply.

Market reactions have been positive, with gold prices consolidating between $3,100 and $3,500 per ounce. Kenny Wu, Citi commodities strategist, noted that current trends favor exceptionally high gold valuations, propelled by Chinese purchasing and de-dollarization efforts.

Demand Surge Raises Gold Reliance and Affects Crypto

Did you know? In 2025, gold demand is projected to reach 110% of mine supply, the highest since the global financial crisis, emphasizing an unprecedented reliance on this precious metal as a secure asset amidst global uncertainties.

Ethereum’s (ETH) current price stands at $2,565.11, with a significant 42.58% increase over the past 30 days. Backed by a market cap of $309.68 billion and a 24-hour trading volume of $14.05 billion, Ethereum maintains 8.99% market dominance, according to CoinMarketCap as of May 26, 2025.

Coincu analysts indicate a potential regulatory shift within the cryptocurrency sector. Heightened gold demand could push investors toward digital assets, promoting further decentralized finance advancements. Historical trends suggest a robust correlation between demand for physical and digital safe-haven assets.