International investment bank Citigroup (Citi) said gold prices could remain broadly flat or see a limited pullback over roughly the next month, with the longer-term outlook upward and a renewed uptrend starting from the final quarter of this year.
Citigroup expects the spot gold price to rise to $4,500 per ounce in the final quarter of this year and to reach $5,000 per ounce in the first half of 2027.
Citi's target for spot gold in the first half of 2027.
On the second trading day of the week, the spot gold price rose 0.2% to $4,062 per ounce, while US gold futures gained 0.7%.
Market focus on US labor data
This week's US labor-market data includes the Job Openings and Labor Turnover Survey (JOLTS), ADP private-sector employment, and nonfarm payrolls; the data is expected to shape expectations for the US Federal Reserve's (Fed) interest-rate policy.
Kedia Commodities Director Ajay Kedia said gold is currently in a consolidation phase and that any weakness in the US labor market could put pressure on the US dollar and support gold prices.
Markets are pricing in about a 65% probability that the US Federal Reserve (Fed) will raise interest rates in September.
Analysts assessed that weaker expectations of a US Federal Reserve (Fed) rate increase would be a positive factor for gold.
Geopolitical risks in focus
US President Donald Trump announced that talks with Iran were continuing, but Iran's Tehran administration denied this, increasing uncertainty in the Middle East.
Tensions in the Middle East could push up energy prices and keep inflationary pressure elevated. According to a source, the possible impact of these tensions on energy prices and inflation is being closely monitored by global markets.
Experts said regional tensions could affect energy prices and inflation, and in turn influence demand for gold, which is seen as a safe-haven asset.
Gold prices are influenced not only by economic data but also by geopolitical developments.
