Deutsche Bank just made a fresh case for buying gold

Deutsche Bank has issued a fresh recommendation advising investors to buy gold following U.S. Treasury interventions in the government bond market. The Treasury announced it would double its bond buyback operations from $2 billion to $4 billion, potentially tapping its nearly $1 trillion General Account. In response, Deutsche Bank analyst Michael Hsueh noted that these policy actions reinforce a constructive outlook for gold, creating upside risk toward his $4,800 per ounce target. Gold traded near $4,650 per ounce, marking its fifth consecutive weekly gain after rebounding 17% from June lows of $3,974. The rally reflects a resurgence in the debasement trade as investors hedge against rising U.S. debt and soaring deficits. Despite the bullish near-term price momentum, the $4,800 target is only about 3% above current market levels and remains below January's peak of $5,589. Robust central bank demand, with net purchases reaching 288.9 tonnes in Q2, continues to provide strong long-term support for the precious metal.