Investors take note: Deutsche Bank revises gold forecast

Recent fluctuations in the gold market are causing major banks to adjust their forecasts. Deutsche Bank has revised its gold ounce price forecast downward, primarily due to persistent uncertainty surrounding the US Federal Reserve's (Fed) monetary policy and waning investor interest. The bank has lowered its gold price target to $4,300 per ounce for the third quarter and $4,800 for the final quarter.

While these new estimates remain above the current gold price of approximately $4,140, they reflect a more cautious approach compared to previous projections. In doing so, Deutsche Bank has aligned itself with the cautious sentiment in the markets.

Last week, Goldman Sachs also reduced its year-end gold price expectation by $500, lowering it to $4,900. This revision was made in response to growing expectations that the Fed will not implement interest rate cuts this year.

According to the assessment by Deutsche Bank analyst Michael Hsueh, positive data from the US economy and expectations regarding the Fed continue to exert pressure on gold. Hsueh stated, "Our bank's forecast for the fourth quarter is based on a scenario where the Fed keeps interest rates at their current level. However, we anticipate that if there are three or four interest rate hikes within the year, gold could decline to as low as $3,800."

Economic circles emphasize that the monetary policy decisions of central banks will play a key role in determining the direction of the gold market in the coming period. Analysts point out that investors should closely monitor any messages that may come from the Fed.

News Source: 12punto