German lender Deutsche Bank (DB) has raised its price target for gold by $300, taking it up to $4,000 per ounce as the rally in the precious metal accelerates.
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The price target boost comes as gold trades above $3,700 an ounce for the first time, with many analysts forecasting continued gains as U.S. interest rates move lower in coming months. For its part, Deutsche Bank said it sees the rally in gold being fueled by strong central bank buying, continued U.S. dollar weakness, and a rate-cutting cycle in America.
The bank previously had a $3,700 per ounce price target on gold, a level the yellow metal has now eclipsed. An expected three interest rate cuts from the U.S. Federal Reserve during the remainder of 2025 would lower the opportunity cost of holding gold, wrote the Deutsche Bank analysts in a note to clients.
Risk v. Reward
The analysts noted that gold, which is treated as a store of value, is attracting more investors amid a rise in macroeconomic and geopolitical uncertainty. In particular, Deutsche Bank cited uncertainty stemming from changes at the Federal Reserve and challenges to the central bank’s independence as being supportive of gold’s price moving forward.
Deutsche Bank also noted that gold demand today is twice the level seen in 2021 coming out of the COVID-19 pandemic, and that China has been a voracious accumulator of the metal. Despite its bullish note, Deutsche Bank warned of seasonal weakness in gold prices during the fourth quarter based on 20-year historical trends.
The bank also lifted its silver price target for 2026 to $45 per ounce from $40 previously. Silver is currently trading at $42.33 an ounce, its highest level in more than a decade.
Is the SPDR Gold Shares ETF a Buy?
The SPDR Gold Shares (GLD) exchange-traded fund (ETF) tracks the spot price movements of bullion. Its price has risen 7.52% in the last three months as geopolitical uncertainty and market risks have grown.
