Continuing the trend that was first begun by the BRICS alliance, Citigroup has predicted that Central Banks are set to drive the Gold price to $3,000. Indeed, the financial institution noted that the increasing demand for the asset is set to make this target a reality in just a matter of months.
The metal has been setting record marks throughout the year. Just three months into 2024, it has reached its most recent landmark price of $2,431 this month. Yet, with both macroeconomic factors increasing its value as a haven asset, and China driving government interest, gold is set to continue its record-setting ways.
Also Read: BRICS Summit 2024: Will European Nations Attend?
Citigroup Latest to Predict BRICS-Driven Success for Gold in 2024
Throughout this year, the value of gold has skyrocketed. The asset has become one of the best performers of the year, with interest only increasing. However, there is still an expectation that the asset can continue climbing in value throughout 2024.
Amid the BRICS’ continued acquisition of the metal, Citigroup is the latest institution to predict that gold will climb; forecasting Central Bank interest to drive the metal to $3,000. Moreover, they predict that such a situation could take place in the next several months.
Speaking to Yahoo, Citi North America Head of Commodities Research, Akash Doshi, discussed the metal’s outlook. Specifically, Doshi notes that the “big drive” of the forecast is the belief that financial demand is going to “catch up to what is strong physical” demand.
Also Read: BRICS: Goldman Sachs Makes Major Gold Price Prediction
Subsequently, Doshi has identified Central Bank interest as a key catalyst. They noted that these countries are purchasing “record amounts” of the asset. Therefore, it has solidified what is already a strong demand pool.
Furthermore, Doshi noted two key avenues where Central Banks have fortified the asset. Specifically, they noted that it “has lifted the gold price floor and has damped downside price volatility.”
The Central Bank’s interest in the asset accounts for 25-27% of gold consumption annually. Therefore, this has become only part of the reason behind its burgeoning success this year. It has also greatly benefitted from the overall interest in the haven asset amid geopolitical tension and US dollar concerns.