Gold prices climbed above the $2,400 mark on Wednesday and cooled down at the $2,388 price range. The XAU/USD index is rallying in the charts delivering massive profits to investors in 2024. The precious metal is attracting heavy buying pressure this week as the Iran and Israel conflict escalates.
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Institutional investors fear a global equity market crash soon and are parking their money in gold for safer options. The development is making gold prices head north while the other leading commodities like oil and gas remain at risk. Oil prices are predicted to reach$100 per barrel due to the escalating tensions in the Middle East.
Gold Prices Could Hit $3,000, Says Citi Bank
Leading global bank Citi Group published a new report forecasting that gold prices will reach $3,000 an ounce. The prediction claims that gold will climb above the $3,000 mark in the next 18 months. Therefore, gold prices could reach the target of $3,000 per ounce after 2025, according to the estimates.
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Citi Bank predicted that gold prices will hover around $2,350 per ounce in 2024. It will then be followed by a significant surge to $2,875 in 2025. The next leg for the precious metal is the price target of $3,000 in 2026, read the forecast.
The US dollar and gold are now the top most sought-after assets in the global markets. Their prices are expected to only increase from the ongoing Middle East conflict as it benefits the safe haven segment.
Also Read: US Dollar & Gold Deliver Top Returns in 2024
“Gold traded strongly as global markets reacted negatively to Israel’s statement regarding Iran’s drone attack retaliation, leading to increased safe-haven buying in gold prices. Comex gold reached 2370$ with overnight gains. Looking ahead, sentiment remains bullish for gold as long as geopolitical tensions persist and escalate,” said Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities to Mint.