Citi analysts predict gold prices could hit a new record in the next three months due to concerns over U.S. growth, inflation, Fed independence, and a weaker dollar. The team raised their price forecast to $3,500 an ounce and sees gold reaching between $3,300 and $3,600. Gold prices rose $36.80 on Monday to $3,436.10.

Gold briefly hit a record high of $3,500 in April and reached a record settlement price of $3,452.80 in June. Despite a summer stall, Citi remains bullish on gold, citing elevated U.S. growth and tariff-related inflation concerns, a weaker dollar, and geopolitical risks. The ICE U.S. Dollar Index has lost nearly 9% this year.

U.S. tariffs on trading partners are higher than expected, with some deals at 15% and Switzerland facing a surprising 39% levy. The impact of tariffs may not be fully felt until 2025. Weaker labor market data, Fed credibility concerns, and geopolitical risks also contribute to gold’s appeal. Gold rose 1% on Monday to $3,436.10 an ounce.

Markets faced higher tariffs and weaker jobs data last week, leading to Trump firing the Bureau of Labor Statistics Commissioner. Trump announced plans to replace the commissioner and a new Fed governor after criticism of current Fed leadership. Expectations for a Fed rate cut in September rose to 85.5%, boosting gold prices.

Investors anticipate a Federal Reserve interest-rate cut following weak jobs data, with Fed-funds futures indicating an 85.5% probability of a September cut. Lower interest rates make holding gold more attractive. Gold prices surged 1.5% to $3,399.80 an ounce on Friday, its best one-day gain since June 12.

Read more at Yahoo Finance: Gold prices are soaring again. Here’s why a new record could be right around the corner.