Citigroup stated on Friday that gold investment allocations are being supported by a series of intertwined geopolitical and economic risks, but approximately half of these risks may subside later this year.

Citibank indicated that some of the core risk factors underpinning gold demand—including concerns over U.S. government debt and AI-related uncertainties—could potentially keep gold prices at levels higher than historical averages. However, the bank estimates that a significant portion of the risks currently priced into gold will not actually materialize by 2026, or even if they do, they are unlikely to persist beyond that year.

The bank further added, "We observe the Trump administration's efforts to achieve a 'U.S.-style gold stabilization' around the 2026 midterm elections, we also foresee an end to the Russia-Ukraine conflict, and a final easing of tensions concerning Iran; all of which would imply a reduction in risk relative to current levels. If Waller's nomination is approved, it would further confirm our long-held view that the Federal Reserve maintains its political independence. This view, in turn, represents another medium-term negative factor for gold prices."