Deutsche Bank has sharply reduced its price outlook for gold, cutting forecasts by approximately 20% for the coming months.
The German lender cited a more restrictive monetary policy stance from the Federal Reserve and weakening investment demand as the primary drivers behind the downgrade.
This marks a notable shift in institutional positioning, signaling that the bull case for the precious metal is facing renewed headwinds from macroeconomic tightening.
Spot gold prices retreated on Tuesday, falling 0.7% to trade at $4,162.
The decline was driven by a strengthening U.S. dollar and growing market expectations that the Federal Reserve may implement further interest rate hikes later this year.
Higher yields and a firmer currency typically erode the appeal of non-yielding assets like gold, creating immediate selling pressure in the session.