Deutsche Bank slashes gold forecast by 20% on tighter Fed outlook

The German lender's sharp downgrade signals growing conviction that higher-for-longer rates will weigh on the precious metal, challenging recent bullish sentiment.

By Handelsavisen Newsroom · Automated 2026-07-20 12:58 UTC · 1 min read

Deutsche Bank has issued a starkly bearish revision to its gold price forecast, cutting its outlook for the coming months by approximately 20%.

The German lender cited a shift toward a more restrictive monetary policy stance by the Federal Reserve as the primary driver behind the downgrade, signaling that the central bank's tightening bias is expected to persist longer than many market participants had priced in.

The move marks a significant shift in sentiment for the precious metal, which has benefited from safe-haven demand and inflation hedging in recent quarters.

By lowering its price target, Deutsche Bank is effectively arguing that the opportunity cost of holding non-yielding assets like gold will rise as interest rates remain elevated, potentially triggering a repricing of the commodity in the near term.

This analysis comes amid a broader backdrop of mixed signals in global markets.

While Wall Street has celebrated strong corporate earnings reports, underlying anxiety is growing regarding the sustainability of the current rally.