After a record-breaking surge, gold prices experienced a decline on Thursday. As of 3:32 PM New York time, spot gold fell 0.4% to $2,854.41 per ounce, and spot silver also edged down 0.3% to $32.2155 per ounce. Meanwhile, COMEX gold futures and COMEX silver futures declined by 0.44% and 0.94%, settling at $2,880.4 per ounce and $32.665 per ounce, respectively.
This dip marks the first significant drop in gold prices following their recent streak of all-time highs. Despite this, the gold market continues to attract safe-haven funds due to geopolitical tensions and trade wars instigated by Trump.
Citigroup remains optimistic about the gold market's outlook, predicting that gold will reach a record high of $3,000 per ounce within the next three months. The bank's analysis indicates that global uncertainties caused by geopolitical risks and trade wars will continue to bolster the demand for gold as a safe haven. Moreover, the appreciation of the dollar may further motivate central banks in emerging economies to increase their gold holdings, prompting market investors to focus more on physical gold and gold ETFs.
Despite the recent decline in gold prices, Citigroup believes that in the long run, global economic uncertainties will continue to support gold prices, with the demand for gold as a safe haven expected to grow. This forecast from Citigroup has garnered widespread attention from the market, with investors closely monitoring how global economic conditions and dollar trends affect gold prices.
