Citi says the dip in gold prices is a buying opportunity

Citi's latest research note highlights gold prices falling to $4,500 per ounce, presenting an opportunity for investors. The bank forecasts a 0-3 month price target of $4,800 per ounce and a 6-12 month target at $5,000 per ounce. Citi's hawkish stance on gold prices is due to a speech by Warsh on August 29, 2026, which they believe offers dip-buying chances.

The firm highlights binary risks associated with the Jackson Hole event and the August rally's frailty, driven by speculative and paper trading with insufficient physical demand. Key technical support levels to watch include the 100-day moving average at $4,366 per ounce and the 50-day moving average at $4,218 per ounce. A $4,000 per ounce level has served as strong support during weak July trading.

China and ultra-high-net-worth investors contributed to gold's July lows, while Treasury purchases of the yen and the U.S. long end pushed prices higher.