Citigroup said,gold priceIt is expected to reach US$3,000 per pound in the next 6 to 18 months as the market expects the Federal Reserve to eventually cut interest rates.investPeople’s money keeps flowing in gold. It also shows that Citigroup has joined the ranks of Wall Street banks that have raised their gold price forecasts.

Citi analyst Akash Doshi and others raised their forecast for the average gold price in 2024 to US$2,350 an ounce, and raised their 2025 gold price forecast by 40% to US$2,875.

In the note, he said trading would “regularly test and break $2,500 in the second half.”

At around 1 a.m. Eastern time on the 16th, the price of gold was reported at $2,387.

Gold prices have risen recently due to factors including the wars in the Middle East and Ukraine.Central bankGold purchases and Chinese consumer demand. Goldman Sachs Group said gold is in an unstoppable bull market and raised its year-end price forecast to $2,700. UBS estimates that gold prices will reach $2,500 by the end of the year.

According to Citi, the rise in gold prices was driven by fund inflows, amid signs that managers are keeping an eye on gold demand from Chinese consumers and the central bank. If the Federal Reserve cuts interest rates and continues to do so through 2025, it will further boost investment demand for gold.

Citi analysts said flows into gold ETFs, which have been short on gold in recent years, would push prices to $3,000. Citigroup expects gold prices to decline in May and June, but expects strong buying support at the $2,200 level.

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