Spot gold touches $4,695/oz intraday, up 0.92%. Citi has lifted its three-month gold price target to $4,800 per ounce, following a surge in bullion values after the U.S. Treasury announced an expanded buyback program for long-dated bonds. Analysts, including Kenny Hu, noted in a research report that the upward momentum in gold prices "still has room to run further."

The analysts stated: "So far, this rally has been primarily driven by speculative flows, especially futures inflows. For the uptrend to persist, physical demand needs to catch up." Citi maintains its 6-12 month gold target of $5,000 per ounce, citing the eventual resolution of tensions in the Strait of Hormuz, falling real interest rates, and a dovish pivot by the Federal Reserve.

The analysts highlighted that remarks from Fed Chair Kevin Warsh at the upcoming Jackson Hole symposium will present two-sided risks for gold prices. "If Warsh delivers a hawkish tone, the current gold rally could come to an abrupt end," they cautioned. Adding that the speculative nature of this advance leaves gold prices vulnerable to a swift pullback.

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