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Citi and JPMorgan forecast gold's direction, setting new price targets
๐Ÿ‡น๐Ÿ‡ท Turkey /Economy & Trade

Citi and JPMorgan forecast gold's direction, setting new price targets

From Cumhuriyet · () Turkish

Translated from Turkish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Citi raised its 0-3 month gold price target to $4,800/oz and maintained its 6-12 month target at $5,000/oz.
  • JPMorgan expects gold to trade between $4,500-$5,000/oz in the short term.
  • Both banks cite geopolitical tensions, potential Federal Reserve policy shifts, and inflation data as key factors influencing gold prices.

Gold prices are poised for further gains, according to major financial institutions. Citi has boosted its short-term outlook, raising its 0-3 month target for the price of gold per ounce to $4,800, while keeping its 6-12 month target at $5,000.

Citi raised its 0-3 month target for the price of gold per ounce to $4,800, while keeping its 6-12 month target at $5,000.

โ€” CitiCiti's updated price targets for gold.

The bank identifies several factors supporting this bullish stance. These include a potential easing of tensions around the Strait of Hormuz, a decline in real interest rates, and a less hawkish monetary policy from the U.S. Federal Reserve. These elements are expected to provide significant tailwinds for the precious metal.

The bank identifies several factors supporting this bullish stance. These include a potential easing of tensions around the Strait of Hormuz, a decline in real interest rates, and a less hawkish monetary policy from the U.S. Federal Reserve.

โ€” CitiFactors contributing to Citi's positive outlook on gold.

JPMorgan shares a similar optimistic view, forecasting gold to trade within the $4,500-$5,000 range in the near term. The bank points to persistent macroeconomic risks stemming from uncertainties in Western Asia and recent tariff news as factors keeping risk premiums elevated. Key upcoming catalysts include the core Personal Consumption Expenditures (PCE) price index and messages from the Jackson Hole Economic Symposium.

JPMorgan expects gold to trade between $4,500-$5,000/oz in the short term.

โ€” JPMorganJPMorgan's short-term price expectation for gold.

JPMorgan anticipates a relatively high PCE inflation reading. However, the bank notes that markets are not fully pricing in a potential interest rate hike by the Fed in September. This sensitivity to upside inflation surprises or shifts in policy messaging from Jackson Hole could drive gold prices higher, potentially nearing the $5,000 mark within a week if market expectations align favorably.

Key upcoming catalysts include the core Personal Consumption Expenditures (PCE) price index and messages from the Jackson Hole Economic Symposium.

โ€” JPMorganImportant events influencing gold prices according to JPMorgan.
DistantNews Editorial

Originally published by Cumhuriyet in Turkish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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