The analysts at Deutsche Bank lifted their 2026 outlook for gold to $4,000 per troy ounce on average, up from $3,700/oz previously.
The move comes after spot gold prices touched the $3,700/oz level on Tuesday, fueled largely by expectations that the Fed will cut rates by at least 25 basis points Lower interest rates typically boost gold by reducing its opportunity cost, weakening the dollar, and lifting its appeal as an inflation hedge and safe-haven asset.
The official demand for gold is continuing at a pace around twice that of the 2011-2021 average, "with much of this on account of China," the analysts said. Recent data showed that China’s net gold imports via Hong Kong rose 126.81% in July from June, while China’s central bank has been adding gold to its reserves in recent months.
Globally, gold demand, including over-the-counter trading, ticked up by 3% versus the prior year to 1,248.8 metric tons in the second quarter. Total investment demand was also up 78% year-over-year.
Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished
