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Deutsche Bank trims gold outlooks by as much as 22%, following Goldman Sachs’ earlier reduction
The Apex Times

THE APEX TIMES

Business/The Apex Times/Jun 23, 5:36 AM EDT

Deutsche Bank trims gold outlooks by as much as 22%, following Goldman Sachs’ earlier reduction

A fresh cut to gold price forecasts from Deutsche Bank underscores how strategists are factoring in softer expectations for US monetary policy and reduced investment appetite for the metal.

Gold bulls are facing fresh resistance after Deutsche Bank reduced its gold price forecasts by as much as 22%, a move that highlights growing skepticism about both the timing of US interest-rate policy and the durability of investor demand for bullion.

In a report carried by Yahoo Finance, Deutsche Bank’s analysts lowered their outlook for the precious metal, with the bank pointing to investor caution around the US monetary-policy path and a slowdown in the investment demand that typically supports gold prices.

The reduction comes after Goldman Sachs also made a cut to its own gold expectations, and Deutsche’s adjustment was described as a follow-on to that earlier sell-side recalibration.

Behind the revisions is the metal’s close linkage to real interest rates and the opportunity cost of holding non-yielding assets. When expectations shift toward less supportive rate or liquidity conditions, the investment case for gold often weakens, particularly for portfolios that treat gold as a hedge or a tactical allocation.

Strategists’ tone also reflects a broader question for the gold complex: whether demand will continue to be driven mainly by safe-haven flows and central-bank interest, or whether investment demand will recede as macro expectations normalize.

Deutsche Bank did not, in the Yahoo Finance report, provide additional granular detail such as specific forecast horizons, assumptions about the dollar or real yields, or quantified changes to separate components of demand. Those specifics are important for readers trying to map forecast cuts to a concrete macro scenario.

For investors and market watchers, the immediate takeaway is that two major banks are now converging on a less bullish base case for gold, at least on their forward-looking price targets. The next announcement to watch will be whether other banks continue the downward revision cycle, and whether bullion price action confirms or diverges from these revised expectations.

Why It Matters

  • Downward forecast revisions from large banks can influence market sentiment, especially when multiple institutions move in the same direction.
  • If expectations for US monetary policy become less supportive for gold, the metal may face continued pressure even if other demand sources remain intact.
  • The emphasis on investment demand suggests that flows beyond traditional hedging motives could be a key swing factor for near-term gold pricing.

Sources

Key Facts

  • Deutsche Bank cut its gold price forecasts by as much as 22%, according to a report cited by Yahoo Finance.
  • The forecast reduction was attributed to investor wariness about the outlook for US monetary policy.
  • The bank also cited weakening investment demand for gold as a reason for the lower targets.
  • The report characterized Deutsche Bank’s move as following an earlier reduction from Goldman Sachs.
  • Gold forecasts are being reevaluated against macro expectations, including how policy outlooks can affect demand for bullion.

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Deutsche Bank trims gold outlooks by as much as 22%, following Goldman Sachs’ earlier reduction | The Apex Times