Gold's Wild Two-Day Rollercoaster Fails to Dampen Wall Street Enthusiasm! Deutsche Bank Sticks to Bullish Call: $6,000 by Year-End

Last Friday's epic plunge in international gold prices continued into Monday with another sharp drop — yet two days of heavy selling have not shaken Wall Street's bullish conviction on the precious metal.

 

Deutsche Bank is maintaining its prior forecast, expecting gold to reach $6,000 per ounce by the end of 2026 — nearly 30% above Monday's price levels.

 

Notably, Deutsche Bank had just raised its gold target last week — only for precious metals to immediately enter a historic selloff wave.

 

Deutsche Bank analyst Michael Hsueh said he does not view the recent volatility as the start of a larger-scale liquidation. Investor sentiment has not fundamentally shifted, and the core fundamental drivers supporting gold's long-term uptrend remain firmly in place.

 

In a Monday research note, Hsueh highlighted the following key supportive factors:

 

Overseas investors and central banks are actively reducing U.S. dollar asset holdings and diversifying portfolios;

 

Retail investor enthusiasm for gold (especially in Asia) remains extremely strong.

 

He specifically pointed out that Poland, Korea, and newer participants such as Hungary, Brazil, Singapore, and Japan are all increasing gold holdings.

 

Hsueh also emphasized that China continues to be a major force driving physical and investment flows. He expects 2026 Chinese gold ETF inflows to reach a record high.

 

JPMorgan strategists similarly reiterated their bullish outlook in a recent report, stating that fundamentals remain solid. The bank raised its end-2026 gold price target from $5,400/oz to $6,300/oz, citing sustained and strengthening demand from both central banks and investors.

 

In Tuesday's Asian session, gold staged a sharp rebound from the prior two days' heavy losses — spot gold briefly climbed above $4,850/oz, up nearly 4% at one point.

 

The day before (Monday), spot gold closed down 4.1% at $4,665.27/oz, with intraday losses briefly approaching 10%. The move was exacerbated by CME Group's margin increase, which intensified selling pressure triggered by last week's nomination of Kevin Warsh as the next Fed Chair. On Friday, gold suffered its largest single-day drop in 40 years — falling more than 12% intraday and closing down 9.25%.