Deutsche Bank raised its gold price forecast for next year to an average of $4,000 per ounce due to strong central bank demand, potential U.S. dollar weakness, and a resumed Federal Reserve rate-easing cycle, up from a previous forecast of $3,700/oz. Factors include uncertainty around Fed rate cuts and challenges to Fed independence.

Official gold demand is twice the pace of the 2011-2021 average, largely driven by China. Recycled gold supply is running 4% below expected levels, easing limits on gold’s upside. However, risks include strong equity market performance, seasonal weakness in gold prices during the fourth quarter, and U.S. economic conditions that may prompt the Fed to hold rates steady in 2026.

Deutsche Bank pointed out that positive U.S. trade negotiations could reduce uncertainty for business investment, but gold’s sensitivity to such events is limited. Non-yielding bullion, considered a safe-haven asset, tends to perform well in a low-interest-rate environment. Gold has risen about 40% year-to-date, hitting a record high of $3,702.95 on Tuesday.

The bank also raised its silver price forecast for 2026 to an average of $45 per ounce, up from $40.

Read more at Yahoo Finance: Deutsche Bank raises 2026 gold forecast to $4,000 as bullion hits record highs