Citi Forecasts Gold to Hit $3,000: Central Banks and Global Tensions Drive Surge

Key Points:

• Citi predicts gold prices could surge by 50% to $3,000 per ounce in 2024.
• Central banks, especially in emerging markets, are increasing gold purchases.
• Rising global conflict risks could boost demand for gold as a safe-haven asset.
• Recent US warnings about Russia’s nuclear anti-satellite weapon heighten geopolitical concerns.

Citi Bank forecasts a dramatic rise in gold prices, projecting a potential 50% increase to $3,000 per ounce by the end of 2024. This bullish outlook is largely attributed to continued accumulation of gold by central banks, particularly in emerging markets such as China, Russia, India, Turkey, and Brazil.

According to Citi, there are two main scenarios driving this projection. The first scenario involves an ongoing trend of central banks increasing their gold reserves. The World Gold Council reports that global central banks have purchased over 1,000 tons of net gold for the past two years, and Citi believes this figure could potentially double.

The second scenario considers the impact of escalating global conflicts, which could push investors towards safe-haven assets like gold. Recent developments have heightened these concerns, with the US issuing warnings to its allies about Russia’s potential plans to deploy a nuclear anti-satellite weapon. CNN reports that Russia is developing a weapon designed to disrupt commercial and government satellites by generating a massive energy wave upon detonation.

These factors combined suggest a strong potential for gold prices to reach $3,000 per ounce this year, driven by both central bank purchases and geopolitical uncertainty.