UPDATE: Deutsche Bank has just announced a significant increase in its gold price forecast for 2026, projecting values between $3,950 and $4,950 per ounce. This upward revision is primarily driven by robust demand from central banks, which continues to reshape the gold market.
The latest data reveals that the third quarter supply-demand dynamics are heavily influenced by persistent buying from central banks and exchange-traded funds (ETFs). “The positive structural picture shows inelastic demand from central banks and ETF investment diverting supply from the jewellery market,” Deutsche Bank noted. This shift suggests that overall demand is outpacing supply, a critical factor for investors to consider.
Moreover, the bank warns that a deeper correction in equity markets could negatively impact gold prices. Deutsche Bank’s analysts anticipate “less Fed easing than the market expects in 2026,” projecting a reduction of only 50 basis points compared to the 93 basis points anticipated by the market. The ongoing geopolitical tensions, particularly a negotiated end to the Russia-Ukraine conflict, could also pose temporary setbacks to gold prices.
Additionally, Deutsche Bank highlights that the implications of their bullish outlook extend to other precious metals. They expect that consecutive years of undersupply will enable silver, platinum, and palladium to capitalize on gold’s strength. Elevated lease rates indicate a scarcity of physical metals, impacting industrial users who often prefer leasing to outright ownership.
Looking ahead, Deutsche Bank predicts that supply-demand imbalances will persist, particularly for silver and platinum, while the palladium market is expected to remain balanced in 2026. This forecast signifies a crucial moment for investors in precious metals, as the market adjusts to evolving demand patterns.
As this situation continues to develop, investors should closely monitor these trends, as they could have significant impacts on the broader financial landscape. Stay tuned for more updates on this evolving story.
