Gold Rate Today 15-Aug-2025
| Date | Gold (22K) per 1 gm | Silver per 1 gm |
|---|---|---|
| 15-Aug-2025 | ₹9,280 (-₹10) | ₹127.00 (no change) |
Citi Increases Gold Price Forecast to $3,500 in 3 Months as U.S. Outlook Weakens
Citi, one of the world’s biggest financial institutions, has raised its gold price forecast for the next three months. The bank now expects gold to reach $3,500 per ounce, compared to its earlier prediction of around $3,300. It also believes gold could move between $3,300 and $3,600 in this period.
Why Gold Prices May Go Up
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Weak U.S. Economy
Citi says the U.S. economy is slowing down. Growth is getting weaker, and inflation is still high. When the economy struggles, many investors buy gold because it is seen as safe. -
Higher Tariffs and Inflation Risk
The U.S. government has recently put higher taxes (tariffs) on goods from other countries like Canada, Brazil, India, and Taiwan. This may increase prices of goods and push inflation higher, which usually supports gold prices. -
Slow Job Growth
Job reports in the U.S. show fewer people are being hired. In July, only 73,000 jobs were added, which is much lower than expected. This weak job growth may push the U.S. central bank (Federal Reserve) to cut interest rates in September. Lower interest rates often make gold more attractive to investors. -
Concerns About U.S. Institutions
Citi also points to growing doubts about the independence of the Federal Reserve and the reliability of official economic data. When trust in institutions falls, people turn to gold as a safe investment. -
Global Tensions
Ongoing geopolitical issues, such as the Russia-Ukraine conflict, are also making gold more appealing. In uncertain times, demand for gold usually increases. -
Strong Gold Demand
Since mid-2022, overall gold demand has risen by more than one-third. This includes buying from investors, central banks, and even jewelry buyers. High demand supports higher prices.
What Is Happening in the Market Now
Right now, gold is trading at around $3,356 per ounce, already close to Citi’s forecast range. The U.S. dollar has also fallen by almost 9% this year, which makes gold cheaper for buyers using other currencies. This helps gold prices rise further.
What This Means for Investors
Citi’s new forecast shows strong confidence in gold for the next few months. If the U.S. economy continues to weaken, inflation stays high, and global tensions remain, gold prices could move toward $3,600 per ounce.
However, gold prices can also be affected by sudden changes in interest rates, currency values, and political decisions. Investors should keep an eye on these factors before making decisions.
In short: Citi believes gold will rise to $3,500 in the next three months because of U.S. economic weakness, inflation risks, slow job growth, and global uncertainty. Demand for gold is already strong, and the market may see new highs soon.
Source- Reuters
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