Hua Er Jie Jian Wen·2026-01-13 01:27Core Viewpoint - Major investment banks, led by Citigroup, are bullish on precious metals, significantly raising short-term price targets for gold and silver due to geopolitical risks, physical shortages, and uncertainties surrounding the Federal Reserve's independence [1] Group 1: Citigroup's Price Target Adjustments - Citigroup has raised its short-term gold price target from $4,200 to $5,000 per ounce and silver from $62 to $100 per ounce, citing strong investment momentum and favorable factors expected to persist in Q1 [1] - The bank highlights that the ongoing physical shortages, particularly in silver and platinum group metals, may worsen in the short term due to uncertainties surrounding U.S. tariffs [1] Group 2: Broader Wall Street Consensus - A growing consensus among major banks indicates that the bullish trend for gold is not yet exhausted, with Morgan Stanley raising its 2026 gold price target to $4,800 and JPMorgan forecasting $5,000, with a long-term outlook of $6,000 [3] - Factors driving this bullish sentiment include the perception of gold as a hedge against inflation and geopolitical risks, alongside a weak U.S. dollar, which has declined approximately 9% in 2025, marking its worst annual performance since 2017 [3] Group 3: Silver and Base Metals Performance - Silver has seen a remarkable increase, with a 147% rise in 2025, attributed to structural supply deficits and industrial demand from sectors like solar panels and battery technology [4] - Analysts from ING and Morgan Stanley express optimism for silver's outlook in 2026, supported by ongoing investment inflows and supply constraints in base metals like aluminum and copper [4]