Gold Hits Highs Amid Israel-Iran Tensions, Mixed Outlook

Gold prices recently surged to record highs near $3,400 per ounce amid escalating tensions between Israel and Iran, increasing demand for safe-haven assets. While some analysts expect gold to continue rising due to ongoing geopolitical risks and central bank purchases, Citigroup predicts a decline to $2,500–$2,700 by late 2025 or early 2026 as investment demand wanes and US interest rates are expected to fall. This contrasts with more bullish forecasts from banks like Goldman Sachs and Bank of America, which project prices could reach $4,000. Global equity markets have experienced declines due to the instability, and short-term catalysts such as US retail sales and Federal Reserve policy decisions may further influence gold volatility. Experts also note that any further escalation in the Middle East could drive gold higher, but easing geopolitical fears might prompt investors to shift to other defensive assets. The overall outlook for gold remains highly dependent on geopolitical developments and central bank strategies.