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Citi calls time on gold’s rally due to slumping demand, Fed cuts
Gold is expected to sink back below $3 000 an ounce in the coming quarters as a record-setting rally runs out of steam, according to Citigroup Inc., calling time on one of the standout rallies in commodities. “Our work suggests that gold returns to about $2 500 to $2 700 an ounce by the second half of 2026,” analysts including Max Layton said in a report. The slump may be driven by weaker investment demand, improving global growth prospects, and rate cuts by the Federal Reserve, they said.
Gold is expected to sink back below $3 000 an ounce in the coming quarters as a record-setting rally runs out of steam, according to Citigroup Inc., calling time on one of the standout rallies in commodities.
“Our work suggests that gold returns to about $2 500 to $2 700 an ounce by the second half of 2026,” analysts including Max Layton said in a report. The slump may be driven by weaker investment demand, improving global growth prospects, and rate cuts by the Federal Reserve, they said.
