Citi: Gold will fall back below $3,000 in the coming quarters

PANews June 17 news, Citi said that it expects gold to fall back below $3,000 per ounce in the coming quarters. Analysts including Max Layton said: "By the second half of 2026, gold will return to about $2,500-2,700 per ounce." Weaker investment demand, improved global economic growth prospects and the Federal Reserve's interest rate cuts may all lead to a decline in gold prices. They said: "We believe that investment demand for gold will weaken in late 2025 and 2026 as Trump's popularity rises and the 'put option' on US economic growth begins to take effect, especially as the US midterm elections become the focus." In addition, "we believe that the Federal Reserve has a lot of room to lower restrictive policies to neutral." In the bank's basic forecast (with a probability of 60%), gold prices are expected to consolidate above $3,000 per ounce in the next quarter and then move lower.