Analysts at U.S. bank %Citigroup (NYSE: $C) have lifted their price target on %Gold by 11% amid ongoing geopolitical uncertainty and stock market volatility.
Citigroup raised its three-month price target for gold to $3,500 U.S. an ounce from $3,150 U.S. previously.
In raising its price target, Citigroup cited continued risks from U.S. tariffs and concerns around the U.S. budget deficit as reasons investors are likely to continue seeking the safety of gold.
The analysts also singled out geopolitical risks outside the U.S. such as the war in Ukraine and heightened tensions in the Middle East as reasons the precious metal remains attractive.
The upgrade from Citigroup comes as gold’s price fell after U.S. President Donald Trump pushed back his threat to impose 50% tariffs on the European Union to July 9 from June 1.
Spot gold’s price is currently at $3,292.00 U.S., down 2% in the last 24 hours.
Gold is coming off its best week in six after President Trump renewed tariff threats on Europe, and said he’s considering a 25% tariff on %Apple (NASDAQ: $AAPL) iPhones made outside the U.S.
Gold broke above $3,500 U.S. an ounce earlier this spring and is up 25% on the year. It is viewed as a safe haven asset by investors during times of economic and political upheaval.
The rising price of bullion has been a boon to gold miners such as %Newmont (NYSE: $NEM), %KinrossGold (NYSE: $KGC), and %BarrickMining Corp. (NYSE: $B).
There have also been recent reports of the ultra-wealthy storing physical gold bars in vaults in countries such as Switzerland, Singapore and Dubai as market uncertainty intensifies.
