Gold prices return to $3300! Wall Street banks show significant divergence in long-term outlook
In fact, as gold prices fluctuate, Wall Street's major banks have recently shown a clear divergence in their views on gold prices. Unlike Goldman Sachs and Deutsche Bank, which are optimistic about gold's performance, Citigroup believes that the long-term outlook for gold prices is not optimistic.
Time:
2025-05-29 09:00
On May 28, gold-related topics once again topped the Weibo trending searches. On that day, spot gold fluctuated sharply, returning to $3300 per ounce and peaking at $3315.65. As of the release of this report by Interface News, spot gold is trading at $3316.64, up 0.49%. Recently, gold prices have fluctuated significantly. On the evening of May 27, spot gold briefly fell below $3300 per ounce, with an intraday drop of nearly 1.5%, and COMEX gold futures simultaneously fell to $3295.9 per ounce. Affected by this, on May 28, domestic gold prices generally fell, with the price of 24K gold jewelry from brands such as Chow Sang Sang and Chow Tai Fook falling to around 986 yuan per gram, with a single-day drop of up to 29 yuan. The volatility of gold prices has also affected investors' returns. According to News Square, a novice gold investor said that nearly 400,000 yuan is still "tied up" in gold investments and has not been recovered. In the past half month, her savings gold account has gone from a profit of more than 50,000 yuan to a loss of more than 30,000 yuan. Another investor said, "I keep checking the gold price on the app, and my emotions fluctuate with the price; I feel numb." In fact, with the fluctuating gold price, Wall Street banks have recently shown significant differences in their views on gold prices. Unlike Goldman Sachs and Deutsche Bank, which are optimistic about gold's performance, Citigroup believes that the long-term outlook for gold prices is not optimistic. Citigroup's latest research report takes a cautious stance on the longer-term gold price trend and points out two potential headwinds: First, the increased expectation of a Fed rate cut may lead to a reduction in the risk of US economic growth and global stock market declines; second, actual statistical data shows that the amount of gold currently held by global households has reached its highest level in 50 years. In terms of the long-term outlook, Citigroup is betting on a downward trend for gold, predicting a significant correction in gold prices in 2026-2027. Goldman Sachs, however, expects gold prices to reach $4000 next year, and Deutsche Bank expects it to break through $3700. In addition, UBS Wealth Management's Chief Investment Office (CIO) released its latest institutional view, predicting that the gold price will reach $3500 per ounce in the next 12 months. UBS stated that in addition to hedging demand and the participation of speculators, there have also been many structural changes in gold allocation demand recently. For example, central banks are systematically increasing the share of gold in their foreign exchange reserves. These structural changes strongly support gold demand. The institution believes that in the long run, from a diversification perspective, allocating 5% of gold in a balanced US dollar portfolio is the optimal choice.
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Gold prices return to $3300! Wall Street banks show significant divergence in long-term outlook
In fact, as gold prices fluctuate, Wall Street's major banks have recently shown a clear divergence in their views on gold prices. Unlike Goldman Sachs and Deutsche Bank, which are optimistic about gold's performance, Citigroup believes that the long-term outlook for gold prices is not optimistic.
Although gold prices rose this week, market volatility has clearly increased. While the US-UK agreement is symbolic, its content is limited and insufficient to alleviate concerns about a global economic slowdown. Therefore, gold prices will continue to fluctuate between safe havens and policy signals, closely monitoring the Federal Reserve's interest rate expectations and global trade sentiment.