Deutsche Bank has cut its gold price outlook for the coming months by approximately 20%, marking a significant shift in sentiment for the precious metal.
The German lender cited a more restrictive monetary policy stance from the Federal Reserve as a primary driver, alongside weakening investment demand from exchange-traded funds (ETFs).
This downgrade underscores the vulnerability of gold to persistent high interest rates, which increase the opportunity cost of holding non-yielding assets.
The move by Deutsche Bank adds to a growing chorus of caution among major banks regarding the near-term trajectory of gold prices.
While the metal has benefited from geopolitical uncertainty and central bank buying in recent periods, the combination of hawkish Fed expectations and ETF outflows is creating headwinds.
Investors are increasingly weighing the prospect of sustained higher rates against the traditional safe-haven appeal of gold.