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Shakeout in the gold price and correlation with risk appetite leaves central banks as its main buyers
Despite its historical reputation as a portfolio diversifier, gold (GC00) has developed a positive correlation with risk of late. High realized volatility in the gold price and its dwindling momentum may discourage the exchange-traded funds whose inflows had been the primary driver of recent strength, leaving central banks as the main bider in the market. This explains why Deutsche Bank has pinned a $4,000-per-ounce average price target on gold in 2026, while adopting a strategically bullish bias and anticipating potential upside to that forecast. That prediction was made by analyst Michael Hsueh in a Tuesday note, ... (full story)
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