On January 31, Citigroup stated on Friday that gold investment allocations are supported by a series of intertwined geopolitical and economic risks, but about half of these risks may diminish later this year.

Citigroup said that some core risk factors supporting gold demand—including concerns over US government debt and AI uncertainties—could keep gold prices at levels above their historical averages.

However, the bank estimates that most of the risks currently priced into gold will not materialize until 2026, or even if they do, they won't sustain beyond 2026. The bank added, "We see the Trump administration working to achieve 'American-style gold stability' during the 2026 midterm elections. We also see the Russia-Ukraine conflict ending and the Iran situation eventually easing, all of which would mean risks are lower relative to current levels. If WASH's nomination is approved, it would further confirm our long-standing view that the Federal Reserve remains politically independent. This view is another medium-term negative factor affecting gold prices."