Citi Sees Gold Price Soaring as Strait of Hormuz Nears Reopening

Citi, a financial institution, is expecting the Strait of Hormuz to reopen in Q4 2026. This development could lead to a decline in oil prices, which would alleviate U.S. inflationary pressures and interest rate burdens.

The bank maintains its bullish outlook on gold, anticipating that weaker real interest rates and a softer U.S. dollar will support gold prices.

Citi sets the 0-3 month target price for gold at $4,800 per ounce and projects a price of $5,000 per ounce over the 6-12 month horizon.