Analysts at %Citigroup (NYSE: $C) have maintained their $3,000 U.S. an ounce price target on %Gold bullion, saying they expect demand for the precious metal to rebound in this year’s second half.
The leading Wall Street bank stresses in a new report that gold consumption continues to trend in a positive direction despite some weakness seen in the year’s second quarter.
Citigroup continues to project a record 1,750 tons of onshore gold imports in 2024, which would represent an 18% year-over-year increase and an eightfold rise from 2020 pandemic levels.
Much of that growth is likely to come from central banks around the world continuing to add to their gold reserves in record numbers, say the analysts at Citigroup.
At the same time, gold demand is likely to rise to a record 35% of gold mine production over the next year due to ongoing trade wars and concerns about U.S. fiscal policies.
Citigroup also expects inflows into gold exchange-traded funds (ETFs) to improve in the second half of this year as the U.S. Federal Reserve begins to lower interest rates.
The bank is forecasting that gold will trade between $2,800 U.S. and $3,000 U.S. an ounce by mid-2025.
Currently, gold is trading at $2,350 U.S. per ounce, having fallen from an all-time high of $2,450.05 U.S. reached earlier this year.
