Deutsche Bank just made a fresh case for buying gold

Wed Aug 26 2026

Deutsche Bank has renewed its bullish view on gold, telling clients to buy the metal following the U.S. Treasury’s decision to increase the size of its bond buyback operations. Analyst Michael Hsueh said the policy shift strengthens the bank’s constructive outlook and could push gold above its $4,800 per ounce target.

Gold has risen for five consecutive weeks and was trading near a three-month high. The Treasury’s move to double the maximum size of bond buybacks from $2 billion to $4 billion has raised expectations that the government may try to contain long-term borrowing costs. Lower yields and concerns about inflation and U.S. debt can make non-yielding gold more attractive.

Deutsche Bank’s gold outlook has changed significantly during 2026. The bank previously had a $6,000 base-case target and an upside scenario near $6,900, but by early August it had reduced its fourth-quarter target to $4,600, with a fair-value estimate of $4,700. The latest move back toward $4,800 represents a bullish revision.

Gold reached a record close of approximately $5,589 per ounce on January 28, before falling to around $3,974 in late June, a decline of roughly 29%. By August 25, gold had recovered to approximately $4,650, putting Deutsche Bank’s $4,800 target only about 3% higher.

The article also highlights strong structural demand. Central banks bought a net 288.9 tonnes of gold in Q2 2026, up 62% year over year. The World Gold Council also reported that 89% of reserve managers expect to increase their gold holdings over the next 12 months.

However, the outlook is not without risk. A more hawkish Federal Reserve stance could push real yields higher and weaken gold’s near-term performance. Federal Reserve Chair Kevin Warsh’s Jackson Hole speech on August 28 was therefore identified as an important event for gold investors.

Overall, Deutsche Bank’s revised $4,800 target signals that the bank believes the major correction in gold may be over. However, the article cautions that this does not necessarily mean gold is immediately heading back to its January record high.

Source: https://www.thestreet.com/