The recent surge in gold prices has the precious metal on track to potentially hit $3,000 per ounce in the next six to 18 months, according to Citigroup analysts. With geopolitical tensions, inflation concerns, and a volatile economy, investors are turning to gold as a safe-haven asset.
Gold prices have already seen a significant increase of more than 15% year-to-date, climbing to $2,383 per ounce and nearing its record high of $2,448. The ongoing conflicts in the Middle East and the Russian-Ukrainian war have added to the uncertainty, driving up the demand for gold.
Concerns over inflation have also played a role in the rising gold prices, as the US reported a higher-than-expected inflation rate of 3.5% in March. The Federal Reserve’s upcoming interest rate cuts and Iran’s recent attack further support the case for investing in gold over fixed income assets like bonds.
Citigroup’s analysts predict an average gold price of $2,340 in 2024, with prices expected to breach $2,500 in the second half of the year. The bank also revised its 2025 price target to $2,875, reflecting a bullish outlook on the precious metal.
Costco has also benefited from the gold rally, with estimates suggesting the retailer is generating up to $200 million in revenue monthly from its one-ounce gold bars alone. With growing interest in gold investments and rising prices, Costco’s gold sales have seen a significant uptick.
As investors continue to seek safe-haven assets amid geopolitical tensions and economic uncertainty, gold remains a top choice for preserving wealth and hedging against inflation.
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