Gold forecast raised to $3,950-$4,950 range for 2026 on central bank demand

Deutsche Bank has revised its gold price forecast upward for 2026, projecting a trading range of $3,950 to $4,950 per ounce, representing potential gains of up to 85% from current levels. The bank cites persistent central bank demand as the primary driver, with Q3 supply-demand data revealing inelastic demand from official institutions. Central banks have been net buyers for 14 consecutive quarters, diversifying reserves away from traditional currencies amid geopolitical tensions. ETF investment flows are also diverting supply from the jewelry market, creating additional price pressure. The structural shift in gold demand patterns suggests sustained support above $2,600, with resistance emerging at $2,800. For forex traders, the bullish gold outlook typically signals potential USD weakness and may benefit commodity-linked currencies like AUD and CAD. The forecast implies continued monetary policy uncertainty and inflation concerns through 2026.