Recently, the financial markets were once again shocked by Citibank's latest gold forecast report. The report significantly raised the gold price expectation, increasing the target price for the next three months from $3,300 to $3,500, and even predicting that the upper limit of the trading range could reach an astonishing $3,600. This forecast stands in stark contrast to the hesitation analysts had last year regarding the $2,000 mark, reflecting a significant shift in market sentiment.

As a seasoned gold investor, the author believes that this anticipated adjustment is not without basis. Recent U.S. economic data has shown signs of weakness, particularly with a noticeable cooling in the job market. A Citigroup report indicates that the slowdown in the U.S. economy is expected to become more pronounced in the second half of 2025, while inflation may experience fluctuations. These factors will all be favorable for the gold market.

What is more noteworthy is the trend of the US dollar. If the Federal Reserve begins a rate-cutting cycle, a weakening of the dollar is almost an inevitable trend. Historical data shows that every time the dollar index declines, gold tends to see a significant increase. The range of $3500-3600 predicted by Citibank is likely based on this logical deduction.

Geopolitical risks are also an important factor driving up gold prices. Recently, the situation in the Middle East has become tense again, coupled with the ongoing conflict between Russia and Ukraine, these uncertainties continue to increase the demand for gold as a safe haven. Industry investors are actively increasing their holdings in gold ETFs, reflecting a general optimism in the market towards gold investment.

However, although the target price of $3600 seems aggressive, the logic for the rise in gold is indeed clear in the long term. However, short-term market fluctuations are inevitable. The author suggests that investors adopt a strategy of buying on dips in batches to avoid blindly chasing highs, in order to cope with the ever-changing market sentiment.

Overall, the outlook for the gold market is bright, but investors should remain rational and closely monitor the global economic situation, monetary policy, and geopolitical changes to make informed investment decisions.