Gold and Oil Prices on the Brink of Historic Surge: Citi Analysts Predict $3,000 and $100 Milestones

Central banks' increasing gold purchases, a global recession, and continued conflict in the Middle East could drive gold prices to $3,000 per ounce and oil to $100 per barrel, according to Citi analysts.

Precious metals price predictions should be taken with a grain of salt, but some people are better at seeing the writing on the wall than others. Such a person is Akash Doshi, Citi's head of North America commodities research. Gold could surge by 50%, particularly if there is a global recession, according to Doshi.

“[This is] the most likely wildcard path to $3,000/oz. Gold is a rapid acceleration of an existing but slow-moving trend: de-dollarization across emerging markets and central banks that in turn leads to a crisis of confidence in the U.S. dollar,” Doshi wrote.

Jonathan Rose, co-founder of Genesis Gold Group, believes that the future price is a secondary consideration to the financial "higher ground" that precious metals offer, especially for retirement accounts.

"Yes, the future looks very bright for physical precious metals, so we're getting tons of calls every day from people who don't want to miss out," Rose said. "I always tell them that you don't wait to buy gold, you buy gold and wait."

Central banks have accelerated their gold purchases to record levels. China, Russia, India, Turkey, and Brazil have been the biggest buyers of gold, with the World Gold Council reporting that in both 2022 and 2023, the world's central banks purchased 1,000 net tons of gold and bullion.

If that doubles very quickly to 2,000 tons, Doshi thinks that we would be actually very bullish for gold. Since gold prices move in the opposite direction of interest rates, if the world falls into a recession and central banks cut rates we will see Gold rise naturally.

“That means the brakes have been cut—not to 3% but to 1% or lower," Doshi said. "That will take us to $3,000.”

Genesis Gold Group is keeping abreast of all the trends affecting American's life's savings. They can be reached at 800-200-4653

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