Citigroup has forecasted a decline in gold prices below $3,000 per ounce in the upcoming quarters, anticipating a potential drop to between $2,500 and $2,700 by the second half of 2026. This outlook is driven by expectations of weaker investment demand, improving global economic growth, and potential Federal Reserve interest rate cuts. Analysts, including Max Layton, have noted that gold demand could soften in late 2025 and 2026 amid these factors. While gold prices are expected to consolidate around $3,100 to $3,500 per ounce in the third quarter of 2025, Citi's overall projection signals a reversal from the recent record-setting rally in gold prices. The bank's forecast reflects a broader market sentiment of waning demand and optimism about economic growth, which may pressure gold prices downward over the medium term.