Citi Calls Gold Price Dip a Buying Opportunity, Reaffirms Bullish Outlook

Citi analysts believe the recent pullback in gold prices presents a compelling entry point for investors, maintaining a bullish stance on precious metals in a new research note. The bank characterized the dip as a buying opportunity, reaffirming price forecasts that suggest significant upside from current levels.

Bullish Forecasts Maintained

According to the firm's note, the recent price action has not altered its positive outlook for gold and silver. Citi's analysts reiterated their price targets, which stand well above the metal's recent spot price of approximately $4,500 per ounce.

• 0–3 month gold target: $4,800 per ounce
• 6–12 month gold forecast: $5,000 per ounce
• Silver forecast: $75 per ounce, compared to a spot price of around $67 per ounce

Market Drivers and Technical Levels

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Citi attributed the price decline to a hawkish speech delivered by Warsh on Friday, August 29, 2026. The bank had previously noted the "binary risks" around the Jackson Hole symposium and the fragile nature of the August rally, which it said was fueled by speculative trading with a lack of follow-through from physical demand.

From a technical perspective, the firm identified key support levels for gold to monitor. These include the 100-day moving average at approximately $4,366 per ounce and the 50-day moving average at $4,218 per ounce. The note also highlighted that the $4,000 per ounce level proved to be solid support during weaker trading in July.

Sources of Underlying Demand

The report stated that buying from China and ultra-high-net-worth individuals helped establish a floor for gold prices during the July lows. Citi also cited that "Treasury purchases of the yen and the U.S. long end" were factors that helped drive prices higher.