American banking giant Citigroup has raised its near-term outlook for precious metals as prices continue to hit new record highs.

Notably, the bank has lifted its 0–3 month base-case target for gold to $5,000 per ounce and for silver to $100 per ounce. The revision reflects the recent surge in metals prices and signals the bank’s expectation that the current bull market will remain intact into early 2026.

The updated forecast points to Citi’s continued view that silver will outperform gold. In this line, strong industrial demand tied to clean energy and advanced manufacturing is amplifying silver’s price momentum, while overlapping investment flows are making the metal more sensitive to shifts in market sentiment.

“Our longstanding call for silver to outperform and for the precious metals bull market to broaden into industrial metals and for industrial metals to take centre stage over the same periods has worked well,” the bank said. 

By contrast, gold’s gains are being driven primarily by hedging demand amid persistent inflation uncertainty, geopolitical risks, and questions surrounding the future path of monetary policy.

The bank also highlighted ongoing tightness in physical markets, particularly in silver and platinum group metals. It warned that uncertainty surrounding potential Critical Minerals Section 232 tariff decisions presents significant risks to trade flows and pricing.

In a high-tariff scenario, shipments into the United States could temporarily worsen global shortages and trigger sharp price spikes, followed by a potential reversal once tariff clarity allows inventories to rebalance.

Silver’s buying opportunity 

While Citi acknowledged that a sharp pullback in silver prices could prompt a broader tactical selloff across metals, it maintained that any such move would likely represent a buying opportunity within a structurally bullish trend.

Meanwhile, looking beyond the first quarter, the bank’s base case assumes easing geopolitical tensions may reduce hedging demand later in the year, leaving gold more exposed. 

At the same time, industrial metals, particularly aluminium and copper, are expected to remain well supported.

Notably, this bullish outlook comes as both metals continue to notch new record highs. As of press time, gold was trading at $4,586, up 6% so far in 2026, while silver was valued at $85.

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