Citi(US:C) Jin Shi Shu Ju·2025-09-30 14:56Core Insights - Citigroup has raised its gold and silver price targets for the next three months to $4,000 and $55 per ounce respectively, reflecting a significant increase in silver's relative value potential [2] - Silver has surged 60% since 2025, outperforming gold by approximately 15 percentage points, indicating a higher beta coefficient for silver, which suggests greater volatility compared to the overall market [2] - Structural factors driving the price increases include concerns over U.S. debt, the sustainability of the dollar's reserve currency status, and the independence of the Federal Reserve [3] Group 1 - The report by Maximilian J. Layton analyzes the structural and cyclical factors behind the rising prices of gold and silver, highlighting concerns over global economic growth and the U.S. labor market [3] - Layton's team anticipates that the physical gold market will respond to high prices, but factors like declining jewelry demand and increased scrap metal supply will take time to affect futures prices [3] - Citigroup suggests that if concerns about economic growth, inflation, and tariffs ease by 2026, investors may shift from gold and silver to copper and aluminum markets [3] Group 2 - The potential dismissal of Federal Reserve Governor Lisa Cook could lead to a more accommodative monetary policy, while a ruling against tariff policies could widen the U.S. fiscal deficit, both of which may further stimulate gold demand [4] - On Tuesday, spot gold reached a historical high of over $3,870 per ounce before retreating, but later recovered to erase all intraday losses [5]