Gold price targets cut by 20% for H2 2026 amid Fed rate hike concerns and weak investor demand.

Deutsche Bank has lowered its gold price forecasts by around 20% for the second half of 2026 due to concerns over the Federal Reserve's monetary policy and strong US economic data. The bank now expects gold to average $4,300 per ounce in Q3 2026, down over 22% from earlier estimates, and $4,800 in Q4, a 17% reduction. If the Fed raises rates multiple times, gold could drop to $3,800. Despite weak demand from investors and outflows from gold ETFs, central bank buying remains strong, providing some support to the market. Previously, Deutsche Bank had projected gold prices reaching $6,000 an ounce driven by fiscal deficits and shifts away from US Treasuries, but the outlook has changed with the Fed's repricing and resilient US economy.