Citi Turns Bearish on Gold, Sets 3‑Month Target at $4,000 per Ounce

October 21, 2025 , Citi Bank has shifted its short‑term outlook on gold prices from bullish to bearish, cutting its 0‑to‑3‑month target to $4,000 per ounce, citing easing geopolitical tensions, a stronger U.S. dollar, and declining safe‑haven flows.

In its latest commodities strategy note, Citi analysts said gold’s earlier momentum—driven by central‑bank buying and robust ETF demand—has begun to fade as interest‑rate expectations stabilize and inflation indicators soften in major economies.

The bank now forecasts gold to trade in a $3,950 – $4,150 band over the coming quarter, warning that further dollar appreciation or higher Treasury yields could trigger additional downside risks.

Citi emphasized, however, that the medium‑term fundamentals for gold remain intact, supported by central‑bank diversification and long‑term inflation‑hedging demand once monetary easing resumes.

The revised forecast comes after bullion recently retreated from record highs above $4,100 per ounce. Market participants are closely monitoring U.S. economic data and the Federal Reserve’s upcoming communications for cues on future price direction.