Could gold fall 25% from current levels? Citi says…

Gold has been on a remarkable upward trajectory, with prices soaring 45% over the last year and achieving an impressive 30% increase in 2025 alone. This bullish trend culminated in an all-time high of $3,500 per ounce on April 22. However, this meteoric rise has prompted market analysts to ponder the sustainability of such levels, with some, including experts at Citi, speculating on the potential for a significant correction. According to Citi's latest analysis, the possibility of a 25% drop in gold prices from current levels cannot be ruled out. The bank cites potential shifts in global economic conditions, such as changes in interest rates and currency fluctuations, as factors that could trigger such a decline. As the market grapples with ongoing geopolitical tensions and inflationary pressures, gold's role as a safe-haven asset may face challenges, prompting investors to reevaluate their positions. While the prospect of a steep decline may unsettle some investors, it's important to consider the broader context of gold's historical performance. The precious metal has often experienced volatility, yet it remains a staple in diversified investment portfolios. As Citi's cautionary note suggests, staying informed and adaptable to market trends will be crucial for those looking to navigate the potential ups and downs of the gold market in the coming months.

— Authored by Next24 Live