Citigroup has projected that approximately half of the geopolitical and economic risks currently supporting gold investments may diminish by the end of this year. The bank highlighted that while concerns such as US government debt and AI uncertainty could sustain gold prices above historical averages, many of the risks factored into current gold prices are unlikely to materialize or persist beyond 2026. Citigroup anticipates developments such as the resolution of the Russia-Ukraine conflict and easing tensions in Iran, alongside potential political shifts in the US, could lower these risks. Additionally, the bank noted that if Warsh's nomination is approved, it would reinforce the Federal Reserve's political independence, posing a medium-term negative impact on gold prices.
Citigroup Predicts Decline in Gold-Supporting Risks by Year-End
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