URGENT UPDATE: Deutsche Bank has just announced a significant increase in its gold price forecast for 2026, projecting a range between $3,950 and $4,950. This bullish outlook comes amid a surge in central bank demand for gold, as officials cite robust supply-demand dynamics that are reshaping the market.
Latest data reveals that central banks continue to show strong interest in gold, effectively pulling supply away from the jewellery market. Deutsche Bank’s analysts noted, “Third quarter supply-demand data supports a continued central bank bid. The positive structural picture shows inelastic demand from central banks and ETF investment diverting supply from the jewellery market.”
This news is particularly timely as gold often exhibits a positive correlation with risk. A deeper correction in equity markets could have a damaging effect, according to Deutsche Bank’s projections for less Federal Reserve easing than previously expected in 2026, with anticipated rate cuts of only 50 basis points compared to market expectations of 93 basis points.
The ongoing geopolitical tensions, particularly the Russia-Ukraine conflict, could also impact gold prices. Deutsche Bank warns that a negotiated end to the conflict could pose a temporary negative for gold demand. However, they emphasize that the overall growth in demand is expected to outweigh supply constraints.
In addition to gold, Deutsche Bank expects this bullish sentiment to spill over into other precious metals. “Consecutive years of undersupply enables silver, platinum, and palladium to participate more fully in gold’s strength,” analysts stated. The outlook suggests that silver and platinum will remain in deficit next year, while palladium markets are anticipated to be balanced.
With heightened lease rates indicating physical scarcity, industrial users are increasingly opting to lease rather than own these metals. This trend could have significant implications for industries reliant on these materials, making this forecast not just a financial indicator, but a potential catalyst for changes across various sectors.
Deutsche Bank’s updated forecast is a crucial development for investors and market watchers. As central banks continue to accumulate gold and demand for precious metals remains strong, all eyes will be on how these trends develop in the coming months, particularly as we approach 2026.
Stay tuned for more updates as this story unfolds!
