Citi Projects $3,500 Gold Price Target Amid Surging Market Demand

Analysts at Citi have raised their long-term price target for gold to $3,500 per ounce, citing unprecedented demand from both institutional and retail investors. The revised forecast comes as macroeconomic uncertainty and geopolitical tensions continue to drive safe-haven asset accumulation. Market observers note particularly strong physical gold purchases by central banks alongside growing ETF inflows, creating sustained upward pressure on prices. This bullish outlook reflects a 40% potential upside from current levels, with some traders already positioning for a breakout above the $2,500 resistance level in the coming quarters.

Gold Poised for $3,500 Ceiling in 2025 as Citi Predicts Even More Record Highs

2025 has certainly been a worrisome year from a geopolitical perspective. The United States has adopted an increasingly aggressive economic policy. As a result, the dollar has struggled mightily, with analysts urging investors to eye different assets amid increased uncertainty.

This has pushed interest in haven assets to reach new heights, and it could be the key part in propelling one precious metal to break even more records this year. Indeed, the gold price has gotten a new $3,500 target price from Citi, as demand has the experts projecting new records for the metal.

According to an MSN report, Citi Research has revised its outlook for gold. Specifically, they have upped the target price over the next three months from its previous $3,200 mark. The analysts noted that increased purchases from Chinese insurers and market volatility derived from tariff concerns have been a catalyst in the expected price jump.

“We think gold is likely to be in extremely rare physical deficit at present,” Citi analysts said. “Meaning, prices need to rise in order to get stockholders to sell to clear the market,” they added. Moreover, they note that the shortage has spurred the price increase, as holders look for encouragement to sell.

China and its BRICS alliance have been buying up gold for much of the last two years. It was a critical aspect of its ongoing de-dollarization plays. That was set to increase this month, as China recently approved a policy permitting ten insurers to allocate up to 1% of their assets to gold. Subsequently, Citi notes that there should be an increase in demand on an annual basis of more than 250 metric tons.