Why does Citibank expect an additional 20% decline in the gold price? And what is the target price?

Continued closure of the Strait of Hormuz:
The bank believes that the continued disruption of navigation in this vital strait until the end of summer will cause global demand for gold to contract, driving prices down to levels not seen in 9 months.

Gold turning into a high-risk instrument:
Unusually, rapid geopolitical and monetary changes have caused gold to react in the opposite direction, making it a high-risk investment in the short term rather than a traditional safe haven.

Repercussions of the US-Iran war:
Since this standoff began on February 28, the factors that historically supported gold’s rise have started to weaken, undermining its status as a safe haven at present.

Warning against the “buy the dip” strategy:
Analysts warned against relying on this strategy right now, deeming it illogical unless there is complete confidence that tensions will not escalate.

Divergence between short-term and long-term outlooks:
The report confirms that the long-term outlook for gold remains positive, but investing in it in the short term requires a high risk tolerance and a longer time horizon.

Target price:
$3,500 per ounce during next September.

$XAUUSD $XAUUSD20 $XAUUSD100