This builds on their conviction here in arguing that gold prices look set to hit $4,000 next year. In their latest note, Deutsche continues to reaffirm the key upside drivers for gold and recommends staying long the precious metal.

With the Fed resuming its easing cycle, the ECB pausing on rate cuts, and the BOJ starting to turn more hawkish, it puts pressure on the dollar and chips away at the currency’s high-yield status. That in turn will weigh on dollar demand as a whole.

Adding to that, Deutsche also points to central bank demand especially from China as another key reason. The flows remain robust – even if unreported – and Q3 buying looks to be relatively steady by their measurements.

Looking to 2026, the firm anticipates gold to deliver another 24% gains – largely driven by central bank demand and favourable macroeconomic backdrops.

While recommending long gold, Deutsche does mention as well to stay short in the oil market. They see a growing surplus in the oil market and weaker demand growth will weigh further on the medium-term outlook for the commodity.