Summary
- Citigroup said it has set base-case target prices for the next 0–3 months at $5,000 for gold and $100 for silver.
- Citi said it expects silver, which has a high share of industrial demand, to continue outperforming gold on the back of clean-energy and advanced-manufacturing demand as well as investment demand.
- The market said investor caution over inflation uncertainty, geopolitical risks, and the monetary-policy path is flowing into precious metals, and interpreted this as leaving room for further gains even in the near term.
A renewed short-term bullish outlook for the precious metals market has been presented.
According to Walter Bloomberg on the 13th (local time), Citigroup said in a report that its base-case target prices over the next 0–3 months are $5,000 per ounce for gold and $100 per ounce for silver. This reflects the recent strength in precious metals prices and represents an upward revision to its previous forecast.
Citi in particular expects silver to continue outperforming gold. With a high share of industrial demand, silver is benefiting from expanding demand for clean energy and advanced manufacturing, and the overlap with investment demand could make the price more responsive, the report said.
The market is interpreting Citi’s latest outlook as a signal that investor caution over inflation uncertainty, geopolitical risks, and the path of monetary policy is flowing into precious metals. Attention is also focused on the fact that Citi explicitly noted there is room for further gains even in the near term.
