Citigroup recently issued a bearish outlook for gold, suggesting the metal could fall to $2,500 or below next year after its sharp, record-setting rally. Their view reflects concern that the recent surge may be followed by consolidation or a meaningful correction as market dynamics shift.
By contrast, UBS senior adviser Brendan O’Connor remains constructive on gold. He still targets $3,500 by year-end, citing resilient fundamentals such as continued central bank buying, ongoing geopolitical tensions and durable safe-haven demand. These factors, in his view, support further upside despite the recent run-up.
For investors seeking alternatives within the precious metals complex, O’Connor highlights silver as a potential complement to gold. He sees roughly 8–9% upside for silver from current levels, noting that silver often participates in precious-metals rallies while offering additional industrial demand exposure.
Beyond metals, O’Connor recommends greater exposure to international equities rather than U.S. stocks, pointing to relatively more attractive valuations overseas. He argues that investors may find better risk-adjusted returns in select developed and emerging market opportunities, where price-to-earnings multiples and macro conditions can be more favorable.
Given his expectations for muted returns in traditional public markets, O’Connor also suggests considering alternative asset classes. Private credit and private equity are examples he mentions as potential sources of diversification and enhanced yield. These private-market strategies, he says, may offer more compelling income and return prospects as central-bank policies and economic growth shape investment outcomes.
In summary, the outlook for gold is mixed among major institutions: Citigroup warns of a possible pullback toward $2,500, while UBS’s Brendan O’Connor remains bullish with a $3,500 year-end target. Investors weighing precious metals should consider silver as a complementary exposure, and look to international equities and alternatives like private credit and private equity to broaden portfolio opportunities amid evolving market conditions.