DB Raises Price Target to $3,350 on "Risks to USD Reserve Status"
"The structural bull case persists"
In this special report, we discuss recent economic and global geopolitical developments and how they are impacting our bullish outlook for the gold price. We conclude that the bull case for gold remains strong despite this week's correction and further upgrade our year-end forecast to USD 3,350/ oz. - Deustsche Banks April 7
Deutsche Bank is raising its price target in the midst of current market turmoil with a brand new report released yesterday. In it they turn to Central Bank physical demand much like Goldman and Bank of America recently have. In addition to the Central Bank demand analysis the following are of special note to GoldFix:
The Bank discusses dedollarization not just as an obvious trend, but as a permanent one, noting graphically the net demand of Treasuries versus Gold has flipped since 2022 and is persistent.
Special observations are made of the underreported Gold demand by central banks. What is being stated is not the whole of what is being bought.
DB also discusses “old gold” correlations like its beta to the USD— stating they still exist, but have “flipped their sign” away from being used as reasons to sell gold into powerful catalysts to buy it now.
ETF demand is also cited as a new and increasingly important reason for Gold’s buoyancy with special (new) attention paid to China’s growing ETF demand (quadrupaling this past period). We would add this is going to remain a growing factor as China’s insurance industry is already tapping into a newly acquired ability to buy Gold for their balance sheets and for their clients. Access stokes demand for Gold much like an IPO attracts stock investors.
Deutsche Bank is getting back into the metals market in a bigger way. In the bigger picture, Deutsche Bank risk analysis represents the German government risk. That implies a biased to the buy side now.
There is plenty more in this must read analysis.