Gold prices are experiencing a bullish divergence as its price has reached $2,861 on Friday’s opening bell. It has surged by more than five points in the day trade with an uptick of 0.18%. The XAU/USD index is now looking to breach the $3,000 mark and usher into a new territory of optimism. The yellow metal remains bullish in 2025 and has continued the positive momentum of 2024. Leading investment bank Citi published a recent prediction forecasting that gold prices could reach $3,000 in the next three months.
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Gold Prices Set to Reach $3,000 In the Next 3 Months: Citi
Commodity analysts from Citi predict that gold prices are all set to touch the $3,000 mark in the next three months. The geopolitical tensions raised by Trump through tariffs will make institutional investors seek a safe haven in gold, wrote the report. The development will only help the XAU/USD index which could soon experience an uptick in the indices.
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“The gold bull market looks set to continue under Trump 2.0 with trade wars and geopolitical tensions reinforcing the reserve diversification/de-dollarization trend and supporting emerging market (EM) official sector gold demand,” Citi analysts wrote in a note.
According to Citi, gold prices could reach $3,000 during the start of Q2 2025. That’s an uptick and return on investment (ROI) of approximately 5% from its current price of $2,861. Therefore, an investment of $10,000 could turn into $10,500 if the forecast turns out to be accurate.
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Citi also wrote that if gold gets exempt from tariffs, it would be best to accumulate the precious metal and hold on for the long term. “A Russia/Ukraine peace deal, and confirmation of whether gold would be exempt from broad tariffs (or not), could provide a buying opportunity over the next 2-3 months,” wrote the commodity analysts.