Gold Could Hit $3,000 Soon. Here's Bank's Prediction

Gold prices have been rising steadily, and they are now approaching the $3,000 mark. Let's take a look at the predictions from major Wall Street banks for the future direction of gold prices:

Citi: Aiming for $3,000

Citi has raised its 0-3 month gold price target to $3,000 per ounce, keeping the 6-12 month target at $3,000 per ounce and raising its 2025 average price forecast from $2,800 per ounce to $2,900 per ounce.The gold bull market is supported by strong physical fundamentals and is expected to continue during the Trump 2.0 era. Citi's gold pricing framework shows that investment demand in Q4 of 2024 will account for 82% of the gold mine supply, and by Q4 of 2025, this figure is expected to rise to over 95%, which will support gold prices at historical highs. Private investment demand in the coming months will increase through gold bars, coins, ETFs, OTC, and other investment channels.With rising real and perceived growth risks (including trade wars, high interest rates, continued deterioration in the U.S. labor market, risks of non-U.S. currency devaluation, and the risk of a U.S. stock market decline), the demand for gold as a hedge tool will continue to grow.

HSBC: Expecting a Consolidation

Gold prices reached a new high, boosted by moderate employment data, but after several rounds of increases, higher yields and a strong dollar may lead to a consolidation in gold prices.The uncertainty surrounding tariffs provides potential support for gold; China reported higher gold holdings and introduced a pilot gold purchase program for insurance companies.

Goldman Sachs: Bearish in the Short Term, Bullish in the Long Term

If tariff uncertainties subside and positions normalize, gold prices are expected to decline moderately in the short term. However, continued central bank buying and gradually increasing ETF holdings as the federal funds rate decreases will continue to support Goldman Sachs' prediction of gold prices reaching $3,000 per ounce by Q2 of 2026.The ongoing U.S. policy uncertainty continues to boost demand for hedging by central banks and investors, which could push gold prices above the $3,000 per ounce target.Although elevated positions reduce the attractiveness of the current entry point (for short-term investors), Goldman Sachs maintains a long-term bullish outlook on gold (for long-term investors and those seeking to hedge against U.S. policy tail risks).

JPMorgan Chase: Year-End Target of $2,950

Bearish sentiment from the stock market could put short-term pressure on gold, but disruptive tariffs continue to fuel gold's mid-term bull market. If the current tariffs persist, the risk of gold reaching JPMorgan's year-end target of $2,950 per ounce leans toward happening sooner than currently expected.