Citi Sees Gold Surging Toward Record Highs Amid Economic Uncertainty 

Citi has sharply revised its short-term outlook for gold, lifting its three-month price target to $3,500–$3,600 per ounce, compared with its earlier projection of $3,300. The bank’s bullish call reflects mounting risks in the U.S. economy and persistent questions about the Federal Reserve’s policy trajectory.

Drivers Behind the Upgrade

The decision comes as U.S. data increasingly points to softer labor market conditions and an economy losing momentum. Analysts at Citi also highlight concerns around the credibility of both U.S. economic reporting and the Fed’s independence, factors that could continue to drive safe-haven demand.

Technical Picture Strengthens

Spot gold is currently pressing against a key resistance band near $3,380, a level that has historically capped rallies. Importantly, the market has already broken through $3,365—previously viewed as the more difficult ceiling—suggesting that the path toward higher levels is opening. The presence of higher lows across recent months underscores the underlying bullish trend.

Market Implications

If Citi’s projection proves accurate, the move toward $3,500–$3,600 would mark a fresh record for gold and could reshape positioning across commodities and FX markets. A weaker dollar and renewed safe-haven flows into precious metals would likely accompany such a rally, while equities may come under pressure as investors rebalance into defensive assets.

In Citi’s view, gold’s technical and fundamental setup aligns to support further upside—making the metal one of the most closely watched trades for the remainder of the summer.