Rising geopolitical tensions, increased central bank gold demand, and shifting US interest rate policies are pushing major financial institutions to revise their gold price forecasts—and Deutsche Bank leads the pack with a bold prediction.
Deutsche Bank Raises Its Gold Forecast to $3,700
Deutsche Bank (ETR: DBKGn) has updated its outlook, forecasting that gold will average $3,139 per ounce in 2025 and soar to $3,700 in 2026.
The bank attributes this bullish stance to ongoing economic instability and rising global demand for safe haven assets.
The bank’s latest report highlights mounting concerns over the U.S. economy. Former President Donald Trump has shown no signs of softening his stance on tariffs, fueling trade tensions and increasing the risk of a recession.
As a result, expectations are growing that the Federal Reserve may start cutting interest rates as early as May.
In a statement released Monday, Deutsche Bank noted:
“We conclude that the upside trend in gold remains intact despite the recent correction. Accordingly, we revise our gold price target for Q4 2025 to $3,350 per ounce.”
Gold Pulls Back Briefly—But Long-Term Momentum Holds
Although spot gold recently declined by over 3%—falling to around $3,020 per ounce—the metal remains resilient. So far in 2025, gold has gained more than 15%, proving its strength as a hedge against market uncertainty.
The short-term dip came as investors sold gold to cover broader losses during a market-wide downturn. Still, analysts say the long-term bullish trend remains intact.
Central Banks Drive Long-Term Gold Demand
Recent data from the People’s Bank of China (PBOC) revealed that China has added gold to its reserves for the fifth consecutive month. This move reflects a broader trend: the growing central banks gold demand.
According to Deutsche Bank, the share of gold purchases by central banks rose from 10% in 2022 to 24% in 2024. Meanwhile, U.S. Treasury bonds have accounted for only 7–10% of net global issuance—highlighting a clear shift toward gold as a strategic reserve asset.
HSBC Offers a More Conservative View
While Deutsche Bank remains optimistic, HSBC has urged caution. The bank expects central bank gold purchases to slow if prices hold above $3,000, but predicts demand will rebound if gold dips below $2,800.
HSBC also raised its own gold price forecast, projecting an average of $3,015 in 2025 and $2,915 in 2026. Like Deutsche Bank, HSBC sees geopolitical tensions as a major driver of long-term gold demand.
Conclusion: A Golden Opportunity Ahead?
With leading banks forecasting sustained gold growth, and global uncertainty showing no signs of easing, the outlook for the gold market remains strong.
Whether you're an investor seeking a safe haven asset or simply tracking commodity trends, gold appears poised to play a central role in the coming years.
