Citi analysts have adjusted their gold price forecasts downward, citing a peak in market deficit which might indicate waning investment demand. Now, the expected trading price stands at $3,300 per ounce for the next three months, a reduction from $3,500.

Reasons for Citi’s Caution

• Market Deficit Peaks: Indications show that the supply shortfall responsible for rising prices may have reached its zenith.
• Decline in Investment Demand: If economic sentiment improves, interest in gold as a safe haven could diminish.

Price Forecast and Influencing Factors

Citi has laid out scenarios, projecting that gold could fall to $2,800 in the next 6 to 12 months:

• High Global Growth Confidence: A robust economy may trigger decreased demand for gold.

Given that investment demand as a portion of mine supply remains significantly high, gold still has support despite potential price declines.