Citigroup (C) Raises Price Target on Gold by 11% as Market Uncertainty Remains High

Analysts at U.S. bank Citigroup (C) have raised their price target on gold by 11% amid ongoing geopolitical uncertainty and stock market volatility.

Citigroup lifted its three-month price target for gold bullion to $3,500 per ounce from $3,150 previously, an increase of 11%. In raising its price target, Citigroup cited continued risks from U.S. tariffs and concerns around the U.S. budget as reasons investors are likely to continue seeking the safety of gold.

The analysts at Citigroup 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 an attractive option for investors right now.

Gold’s Price Action

The upgrade from Citigroup comes as gold’s price fell nearly 1% on May 26 after U.S. President Donald Trump pushed back his threat to impose 50% tariffs on goods from the European Union to July 9 from June 1, leading stocks to rally and bullion to retreat.

Spot gold’s price is currently at $3,341.70, down about 1% in the last 24 hours. Gold is coming off its best week in six after President Trump renewed tariff threats on the European Union, and said he’s considering a 25% tariff on any Apple (AAPL) iPhones that are not made in the U.S.

Gold broke above $3,500 an ounce earlier this spring and is up more than 25% this year.

GLD Performance

The SPDR Gold Shares (GLD) exchange-traded fund (ETF) holds physical gold and tracks the spot price movements of the precious metal. As one can see in the chart below, GLD has risen 16.92% in the last three months.