Gold could reach $3,600 as global demand peaks, says Citi’s Max Layton

Gold and silver continue their stellar run, with prices reaching record highs in both global and Indian markets, driven by investor optimism over potential US Federal Reserve rate cuts. Max Layton, Global Head of Commodities at Citi, shared his insights with CNBC-TV18, highlighting the strong bullish momentum for precious metals in the near term.Citi has raised its near-term gold price target to $3,500 an ounce, with a broader forecast range of $3,300–$3,600 an ounce. Layton attributes this rally to multiple factors: rising uncertainty from global tariffs, robust central bank demand, and resilient jewellery consumption in major markets such as India and China.

He noted that households worldwide now hold 3% of their wealth in gold, up from 1.5% just three years ago, marking a 50-year high in gold allocation.

Read Here | Silver may shine brighter than gold this year, says Nirmal Bang’s Kunal Shah
Silver has outperformed gold this year, climbing nearly 40% to around $41 an ounce, and Citi expects prices to reach $43 an ounce in the near term. The silver rally is fuelled not only by investor demand but also by a structural supply deficit.Layton also highlighted that the US dollar is expected to weaken over the next three months, which would further support gold and silver prices. Citi forecasts consecutive Fed rate cuts through March 2026, potentially bringing rates down to 3 to 3.25%, reinforcing the bullish outlook for precious metals.

While Citi remains cautious on base metals in the short term due to tariffs and interest rate pressures, Layton is optimistic about the longer-term prospects for copper and aluminium, projecting prices of $11,000–$12,000/tonne and $3,000+/tonne, respectively, over the next 12–24 months.

For the full interview, watch the accompanying video

Also Read | Gold crosses ₹1.06 lakh per 10 grams for the first time in India