• Gold outlook remains constructive amid a dovish Fed and ongoing geopolitical risks.
• Deutsche Bank upgraded its gold forecast to $4,950 in 2026.
• Markets await key US data to find fresh short-term impetus.

Gold price stays above the $4,200 level on Wednesday during the European session, consolidating after a sharp rally as investors awaited US economic data that could affect the Fed’s near-term policy path. Markets remain broadly supported by the dovish Fed expectations, resilient central bank demand, and geopolitical risks.

A major medium-term narrative for gold came from Deutsche Bank, which upgraded its 2026 gold price forecast to $4,450, up from $4,000 previously. The bank now anticipates gold to range between $3950 and $4,950 in 2026, while for 2027, the forecast rises to $5,150.

The upgrade stems from three structural forces:

• Heavy institutional buying
• Tight supply conditions
• Stabilizing investor flow

Central banks remain the pivot of the bullish story as the official demand in Q3 2025 marked the third-largest quarterly total in dollar terms. Deutsche Bank estimates the central bank buying to reach 1,053 tons, up from 853 tons in 2025.

Growing geopolitical uncertainty, de-dollarization, and ETF flows continue to divert supply from jewelry markets. On the supply side, global mine output is forecasted to rise marginally to 3,175 tons in 2026, while recycled supply is expected to reach 1,470 tons, remaining below historical peaks.

Gold’s short-term momentum remains largely influenced by the Fed’s outlook. Markets now price in nearly a 90% probability of a 25-basis-point rate cut next week, pushing the US dollar to two-week lows and offering support to the non-yielding yellow metal.
 

Gold Key Events Ahead

The US ADP Employment and ISM Services PMI data are due today. Meanwhile, Friday’s Core PCE Index data is also important to watch as inflation remains a primary factor in shaping Fed policy.
 

Gold Technical Outlook: Sideways Near $4,200
 

(Click on image to enlarge)

Gold 4-hour chart
 

The gold 4-hour chart shows a mild bearish outlook as the price slides below the 20-period MA. However, a bearish pinbar’s lows near $4,165, confluence with the 50-period MA, could prevent further downside. The RSI stays flat near the 50.0 level, suggesting no clear momentum.

Moving back above the 20-period MA could ignite bullishness, pushing towards $4,265 ahead of $4,300. However, the recent swing highs near $4,230 could challenge the upside.

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