Gold prices are facing renewed headwinds as major investment banks and rating agencies downgrade their near-term outlooks for the precious metal.
The consensus shift comes after gold has shed more than 25% of its value since late January, with prices hovering around the $4,000 per ounce mark amid challenging market conditions.
Deutsche Bank has been among the most aggressive in adjusting its forecasts, cutting its price outlook for gold by approximately 20% for the coming months.
The downgrade reflects a broader repricing of safe-haven assets as the US dollar strengthens.
According to recent market data, gold slipped to its lowest level in nearly two weeks on Wednesday, driven by shifting expectations in the Federal Reserve’s monetary policy path.
A more restrictive stance from the Fed has bolstered the greenback, increasing the opportunity cost of holding non-yielding assets like gold.
Deutsche Bank has been among the most aggressive in adjusting its forecasts, cutting its price outlook for gold by approximately 20% for the coming months.