(Reuters) – Citi Research raised its quarterly forecast for the gold price (GC=F), citing a possible further deterioration in the U.S. labor market, Federal Reserve interest rate cuts and physical and ETF purchases, the company said in a note on Monday note. .
The bank raised its view on gold prices for the next three months to $2,800 an ounce from $2,700 previously, adding that its forecast for the next six to 12 months is $3,000.
It revised its 6- to 12-month silver price forecast (SI=F) from $38 per ounce to $40 per ounce.
“We note that gold and silver have performed exceptionally well despite the weakening of physical demand in China and rising US yields since the Fed cut rates by 50 (bps) and labor costs improved last month,” the note said.
Gold should also rise in the scenario that oil peaks amid an escalation in the Middle East in the near term, it added.
Gold rose to a record high on Monday, while silver hit a nearly 12-year high, as growing uncertainty surrounding the US presidential election and the war in the Middle East further strengthened gold’s rally, already fueled by expectations of a easing of interest rates.
Citi said it remains neutral-bullish on platinum (PL=F) with a three-month price target of $1,025 per ounce and a six- to 12-month price target of $1,100 per ounce.
It added that palladium (PA=F) is trending bearish following the recent price rally with a three-month target of $1,000 per ounce and a 6-to-12-month target of $900 per ounce.
Citi also said that oil fundamentals (CL=F, BZ=F) point to an average price of $60 per barrel in 2025, but that the potential for geopolitical escalation in the Middle East in the very near term is high.
(Reporting by Anjana Anil in Bengaluru; Editing by Aurora Ellis)
