Deutsche Bank: Gold looks attractive for investors in the upcoming period
Deutsche Bank stated that gold is oversold and investor positions have dropped to low levels, making it look attractive for the next year.
Daniel Ghali, Head of Precious Metals Research at Deutsche Bank, stated that gold is oversold and investor positions have declined to low levels, presenting an attractive outlook for the coming year.
Expectation of Resistance in Gold Prices
Daniel Ghali, Head of Precious Metals Research at Deutsche Bank, made important assessments in an interview with BNN Bloomberg. Ghali pointed out that despite the US 10-year Treasury yield being above 5 percent and oil prices exceeding 100 dollars per barrel, gold has not made a new low since July.
Central Banks and Institutional Purchases
Ghali stated that gold purchases by central banks and other official institutions are more than twice the pace of the 2021-2022 period. It was also emphasized that institutional investors' participation in gold has increased by approximately 70 percent since 2021.
Market Positions and Other Metals
In Deutsche Bank's note dated September 30, it was stated that trend-following funds' net short positions have risen to the highest level since October 2021. On the other hand, Ghali noted that while he expects a supply surplus in silver, he thinks copper is the metal with the highest profit potential.