It follows the more bullish stance taken by Goldman Sachs, which, on Monday, adjusted its forecast to $2,700 per ounce, up from $2,300, in recognition of a robust bull market.
Both financial giants cite heightened investment inflows and escalating geopolitical tensions as key drivers behind their revised forecasts.
Middle East conflict is supporting the safe-haven status of the metal, which overnight took on a new dimension as Israel vowed to hit back at Iran’s failed missile attack on Saturday night.
Deutsche Bank points to a sustainable investment demand as a major factor for its stance, suggesting that any profit-taking by early investors is likely to be quickly offset by new market entrants who share the optimistic future of gold.
The current run has seen a 20% rally in gold prices over the past two months, with market sentiment strongly tilted towards further gains.
Additionally, geopolitical risks, particularly in the Middle East, are seen as critical supports for ongoing high prices.
Central banks’ significant purchasing activities, recognised as pivotal in 2022, continue to bolster the gold market, reinforcing the strong trajectory, noted by Deutsche Bank.
The bank has also adjusted its gold fair value model to account for past market undervaluations, indicating a corrective trend in current prices.
Currently, the gold spot price is $2,371.80, barely changed on the day.
CEO and Founder of CanAm Bullion has been dedicated to delivering exceptional value to Canadians since 2017. Driven by a mission to empower Canadians with expert investment advice and education, he has positioned CanAm Bullion as a trusted resource for those seeking to enhance their portfolios with precious metals. Under Michael’s leadership, the company has become synonymous with reliability, knowledge, and dedication, helping Canadians achieve greater financial stability and long-term success.
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