Citi Research has boosted its three-month gold price target from $3,200 to $3,500 per ounce, pointing to growing demand and tight physical supply. A key factor driving this revision is increased gold buying from Chinese insurers, who are now allocating up to 1% of their portfolios to the metal. This shift alone could add around 255 tonnes of new demand annually—roughly a quarter of what central banks purchase worldwide.
Citi also highlights that the gold market is facing a rare physical supply deficit, suggesting prices will need to rise further to restore balance. Add in macroeconomic uncertainty—like tariff concerns, a weakening U.S. dollar, and global market volatility—and the case for gold remains strong.
At Allenhouse Metals, we see this as further confirmation that gold remains a smart hedge in today’s unpredictable financial landscape.
