Deutsche Bank has reaffirmed its bullish stance on gold, declaring that the precious metal remains in an "explosive phase" and sticking to its year-end price target.
The German lender’s latest commentary marks a notable pivot from its recent bearish revisions, where it had cut its near-term outlook by approximately 20% citing restrictive monetary policy and weakening exchange-traded fund demand.
The bank’s renewed optimism suggests that structural drivers, including central bank buying and geopolitical hedging, are now viewed as outweighing the short-term headwinds that prompted the earlier downgrade.
By maintaining its year-end target, Deutsche Bank signals that it views recent price volatility as a buying opportunity rather than a trend reversal.
This shift in tone comes as markets navigate a complex macro environment.
While the Federal Reserve’s continued restrictive stance had previously weighed on non-yielding assets, the bank’s updated view implies that investors are increasingly pricing in the likelihood of eventual policy easing.