Banks Predict Gold Prices: What to Expect by Year-End

Global financial institutions are adjusting their gold price forecasts, with differing outlooks for the precious metal's trajectory. Deutsche Bank Wealth Management, in its "Perspectives 2026" report, anticipates gold will continue its upward trend, projecting an end-of-2026 price of $4,500 per ounce.

Deutsche Bank's optimism stems from the expectation of sustained strong demand from central banks. The bank also noted that a potential decline in short-term bond yields could reduce gold's opportunity cost, making it more attractive as an investment that offers no interest.

Conversely, Wells Fargo Investment Institute has lowered its price targets for gold, revising its end-of-2026 forecast from $5,300-$5,500 to $4,900-$5,100, and its 2027 forecast from $5,800-$6,000 to $5,400-$5,600. The institution attributes the recent pressure on gold prices primarily to rising real interest rates in the U.S. since March, which have diminished gold's appeal compared to interest-bearing investments.

Despite the downward revision, Wells Fargo maintains a positive long-term view on gold. The institution noted that gold has begun to regain momentum after a challenging period since March, with a significant weekly gain in early August. Factors supporting this rebound include expectations of progress in Middle East negotiations and reduced anticipation of further interest rate hikes by the U.S. Federal Reserve. Additionally, outflows from gold-backed exchange-traded funds (ETFs) appear to be stabilizing, with inflows beginning to re-emerge.