Citi Research raised its forecast for the yellow metal's prices over the next three months, citing the possibility of further slowdown in the US labor market, further interest rate cuts by the Federal Reserve and increased investor interest in exchange-traded funds.
The institution raised its expectations for gold prices for the next three months to $2,800 per ounce from $2,700 previously, expecting prices to reach $3,000 per ounce in the period ranging from 6 to 12 months.
Gold prices hit a record high on Monday, continuing their strong rally amid uncertainty surrounding the U.S. election, rising tensions in the Middle East and major central banks cutting interest rates, while silver rose to its highest level in nearly 12 years. It hit an all-time high of $2,732.73 in yesterday’s session.