Citigroup Inc. has predicted that the world’s leading safe haven asset, gold will reach $3,000 per ounce.

This announcement comes amidst a significant surge in investor interest in the precious metal, fueled by a myriad of factors ranging from geopolitical tensions to shifting monetary policies.

Analysts at Citigroup, led by Aakash Doshi, have upgraded their estimates for average gold prices in 2024 to $2,350, with a 40% upward revision in their 2025 prediction to $2,875.

They anticipate that trading will regularly test and surpass the $2,500 price level in the latter half of the year.

The rationale behind Citigroup’s optimistic outlook lies in several key factors. Firstly, the expectation of a Federal Reserve interest rate cut has spurred increased investor inflows into gold as historically low interest rates tend to make non-yielding assets like gold more attractive.

Also, ongoing conflicts in regions such as the Middle East and Ukraine have heightened geopolitical uncertainty, further bolstering gold’s appeal as a safe-haven asset.

Furthermore, central banks, particularly those in emerging markets, have been actively accumulating gold reserves, adding to the overall demand for the precious metal.

China, in particular, has demonstrated robust consumer demand for gold, further underpinning Citigroup’s bullish stance.

According to Citigroup analysts, the resurgence of inflows into gold-backed exchange-traded funds (ETFs) has played a significant role in supporting the climb towards the $3,000 mark.

This trend marks a departure from recent years, where such inflows were relatively subdued.

While Citigroup acknowledges the possibility of a pullback in prices around May or June, they anticipate strong buying support at the $2,200 per ounce threshold, suggesting that any dips in price may be short-lived.

The bank’s forecast aligns with sentiments expressed by other major financial institutions. Goldman Sachs Group Inc., for instance, has raised its year-end forecast for gold to $2,700, citing similar factors driving the commodity’s upward trajectory.

UBS Group AG also sees gold reaching $2,500 by the year’s end, further corroborating the bullish outlook shared by Citigroup.

As investors brace for what could be a historic rally in gold prices, Citigroup’s projection serves as a testament to the growing optimism surrounding the precious metal.

With geopolitical tensions simmering and central banks poised to enact accommodative monetary policies, gold appears poised to shine brightly in the months ahead, potentially realizing Citigroup’s ambitious target of $3,000 per ounce.

As tensions simmer in the Middle East and concerns loom over Federal Reserve policy, gold continues its upward trajectory, defying expectations and reinforcing its status as the ultimate safe-haven asset.

The latest surge in gold prices comes amidst escalating geopolitical tensions in the Middle East.

Reports suggest that the United States and its allies are bracing for potential missile or drone strikes by Iran or its proxies on military and government targets in Israel. Such a significant escalation in the six-month-old conflict has sent shockwaves through financial markets, prompting investors to seek refuge in gold.

Despite initial setbacks earlier in the week, gold resumed its blistering rally, buoyed by the specter of geopolitical uncertainty.

On Wednesday, the precious metal witnessed its most significant decline in almost a month following a hotter-than-expected US inflation readout.

This unexpected data led traders to recalibrate their expectations for Federal Reserve interest rate cuts this year, causing the yield on 10-year Treasuries to surge above 4.5%.

However, gold’s resilience in the face of shifting market dynamics remains remarkable. Even as concerns mount over the Fed’s rate-cutting trajectory, the allure of gold as a safe-haven asset persists.

Prices hover just shy of a record high reached earlier in the week, propelled by robust buying from central banks.

Market analysts interviewed by Bloomberg anticipate further gains in gold prices, citing continued geopolitical tensions and strong momentum in the market.

The precious metal’s near-20% rally since mid-February underscores its enduring appeal as a hedge against uncertainty and inflationary pressures.

At 9:54 a.m. in Singapore, spot gold rose 0.3% to $2,341.58 an ounce, signaling continued investor confidence in the metal’s resilience.

The Bloomberg Dollar Spot Index, meanwhile, remained relatively unchanged near its highest level since November.

Silver, often considered a bellwether for precious metals, held steady after reaching a three-year high, while platinum and palladium also registered gains.

As the world navigates through a complex web of geopolitical tensions and economic uncertainties, gold remains a beacon of stability in an increasingly volatile landscape.

Its ability to weather market fluctuations and maintain its allure as a safe-haven asset reaffirms its timeless appeal to investors seeking refuge amidst uncertainty.

A quiet revolution is underway in Cameroon as farmers enticed by soaring cocoa prices are abandoning traditional crops to embrace the lucrative world of cocoa farming.

The recent surge in cocoa prices has prompted a wave of optimism among farmers, signaling a shift in the agricultural landscape of the West African nation.

Banyuy Elsie Kinyuy, a 57-year-old high school tutor from Yaoundé, the capital city of Cameroon, epitomizes this transformative trend.

In November, Kinyuy made a bold decision to invest in a 3-hectare parcel of land in a rural area, approximately 200 kilometers northwest of her home. With determination in her heart and cocoa trees in her hands, she planted the seeds of her future retirement income.

“I remember earning 1.5 million CFA francs ($2,458) from these crops at one moment, whereas cocoa could barely give me 600,000 francs to 700,000 francs,” says Jean-Marie Mbida Obam, a 61-year-old farmer who has decided to return to cocoa farming after a hiatus of three years.

“I am back and prepared to completely revive all of my plantation. The cocoa price now is very good,” he adds, highlighting the allure of cocoa amidst the price surge.

The catalyst for this seismic shift lies in the global cocoa market dynamics. Double-digit production declines in Ivory Coast and Ghana, the top two cocoa-producing nations, have led to a scramble for beans.

Bad weather and a shortage of fertilizer have plagued cocoa farmers in these countries, causing a significant drop in production.

Consequently, cocoa prices on the New York futures exchange have skyrocketed from below $3,000 to $10,000 a ton in just a year.

Cameroon, with its favorable climate and fertile soil, has emerged as an attractive destination for cocoa cultivation.

Forecasts by the International Cocoa Organization predict a 3% increase in Cameroon’s cocoa crop, reaching 300,000 tons, amidst a global shortage.

Encouraged by such projections, farmers like Kinyuy and Obam are seizing the opportunity to tap into the potential of cocoa farming.

However, the journey towards a cocoa-rich future is not without its challenges. Traditional practices and land tenure systems often pose obstacles to aspiring cocoa farmers.

The need for modernization and access to resources such as land, finance, and technology remains paramount for sustainable cocoa cultivation.

Moreover, the European Union’s stringent regulations aimed at combating deforestation pose a looming threat to expansion plans in the cocoa industry.

Chocolate makers are now required to ensure that every bean imported into the EU is sourced sustainably, adding another layer of complexity to the cocoa supply chain.