(Kitco News)-- Citi has revised up short- and medium-term forecasts for gold to $1,300 an ounce. “We believe diversification/safe-haven demand could persist for some time,” Citi says. Demand has been boosted by “anemic” Western economic growth and the prospect for interest rates to remain on hold for many quarters yet, Citi says. However, World Gold Council data showed that scrap sales, encouraged by lofty prices, were the second highest ever in the second quarter, while high prices have hurt physical demand some. Meanwhile, Citi says, silver could benefit from its precious-metals status if the global economic recovery faces further headwinds. However, rallies could be more limited in gold since silver hinges more on industrial demand. “We continue to believe that silver is likely to hold in a $18-21/oz range over the next 6-12 months,” Citi says.