26.06.2025 10:50
The American investment bank Citi expects gold prices to decline by over 20% by the end of 2025 and in 2026. According to the bank, strong growth expectations for the U.S. economy and the increasing popularity of Donald Trump could drive investors away from gold. Additionally, the Fed's transition from a tight monetary policy to a neutral stance could also support this process.
A prediction that will upset gold investors has come from the American investment bank Citi. In a note published by the bank's analysts, it is forecasted that gold prices could experience a decline of over 20% by the end of 2025 and into 2026.
TIME TO LEAVE THE SAFE HAVEN
The basis of the prediction lies in strong growth expectations for the U.S. economy. According to analysts, as investors turn to areas that can provide higher returns during this period, demand for safe havens like gold will decrease. Citi highlighted the increasing popularity of Donald Trump and the economic confidence this situation will create, stating, "Ultimately, we expect the protective effect of Trump's popularity and U.S. growth to come into play."
TRANSITION FROM 'RESTRICTIVE' POLICY TO 'NEUTRAL' LINE
The bank's assessment noted that there is "significant room" for the U.S. Federal Reserve (Fed) to transition from a restrictive monetary policy to a more neutral stance in the next 6 to 9 months. It was stated that this transition would support economic growth not only in the U.S. but also on a global scale. For gold investors, these developments make it necessary to establish a cautious strategy for the upcoming period.
CURRENT STATUS OF GOLD PRICES
This morning, after testing $3343 in the spot market, the ounce of gold is currently trading at $3334.95, reflecting a 0.08% increase compared to yesterday. The gram of gold is being bought at 4262 TL. The quarter gold is sold at 7,020 TL, and the Republic gold is sold at 27,960 TL.