Deutsche Bank Research Analyst Michael Hsueh reiterates its bullish outlook on Gold, maintaining a target price of $6,000 per ounce. The report emphasizes that recent price corrections do not indicate a fundamental shift in investor sentiment. It highlights ongoing positive thematic drivers for Gold and notes significant investment flows from China as a key factor supporting this outlook.

Bullish outlook for Gold persists

"We argue that the adjustment in precious metal prices overshot the significance of its ostensible catalysts. Moreover, investor intentions in precious (official, institutional, individual) have not likely changed for the worse as of yet."

"Gold's thematic drivers remain positive and we believe investors' rationale for gold (and precious) allocations will not have changed. The conditions do not appear primed for a sustained reversal in gold prices, and we draw some contrasts between today's circumstance and the context for gold's weakness in the 1980s and 2013."

"We see signs that China has been a prominent driver of precious metal investment flows. Thus, the rise in SGE premiums late last week is an important sign of amplified buying interest in gold."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)