Gold Price Could Reachโ $4,600 by End of 2026,German Bank Predicts Amid Recordโ Investment flows
November 28,2025 – โGold is experiencing a surge in investor interest,with inflows โขinto gold-backed Exchange Traded Funds (ETFs) reaching โa record $26 billion in the July-September period of 2025. This momentum is expected to continue, โpotentially โขdriving the price ofโค gold toโ $4,600โฃ per ounce by the end of 2026, according to a recent analysis by German Landesbank Baden-Wรผrttemberg (LBBW).
The third quarter saw North โAmerican investors lead the charge with $16.1 billion in ETF โขinvestments, while European funds recorded aโข historicalโ $8.2โฃ billion influx. These “paper gold” products, which track gold price movements without requiring direct ownership of the metal, hold physical gold reserves but offer limited diversification due to theirโข single-asset focus.
LBBW analyst Martin Siegert attributes the โขbullish outlook to several factors, including anticipated interest rate cuts in โฃthe US,โ growingโ skepticism regarding theโ independence of the US โฃFederal Reserve (Fed), ongoing debate surroundingโ theโ future of the US โขdollar, and โpotentialโ market disruptions stemming from US trade policy.
“Strong arguments supporting gold โcontinued,” Siegert stated in a late November assessment, predicting continued inflows into gold ETCs.
The forecast comesโ as gold reached a yearly peak exceeding $4,350 in October, โand traded around โฃ$4,150 asโ of November 27th.
This โsurge in gold investment isn’t limitedโฃ toโ conventional finance.โข US investment bank Morgan Stanley recently recommended a significant portfolio shift, proposing a “60/20/20 โฃmodel” โฃ- allocating 20% to โขgold products instead of the traditional โค40% bond allocation in aโข “60/40” portfolio. Morgan Stanley’s Investment Office Director Mike Wilson โdescribed gold as a powerful asset during times of uncertainty,โ offering a strong โhedge against inflation. the Financial Times characterized the enthusiasm โฃas “goldplated fomo”โ (fear of missing out), noting โฃthe โฃrally represents the largest โคincrease since the 1970s.
Even the cryptocurrency โsector appears to be contributing to the gold rush. Tether,a major digital asset company and issuer of the โUSDT stablecoin,is now developing gold-backed “Goldcoin” products and has amassed the largest private gold reserves โฃoutside of major central banks,operating from its baseโค in โEl salvador.
However, not all analysts areโ convinced this is a sustainable trend. MKS expert Nicky Shields warns that gold is โขbecoming a speculative tool in an โoverheated market. “There has been a completeโ bubble โin the markets โฃin the last twoโ months, not only in gold and silver, but also in US stocksโ and AI assets,” Shields told DW,โ attributing โคthe โคsituation โฃto the Fed’s โinterest rate โcuts despite the absence โof a recession, which he believes โhas injected excessive liquidity into the market.
Evergreen Context: โGold has historically served as a safe-haven asset during times of economic and political uncertainty.โค Investors often turn to gold โขto preserve wealth whenโข confidence in traditional investmentsโฃ like โคstocks and bondsโฃ declines. Theโค price of gold โคis โinfluenced by factors such as interest rates, โinflation, geopolitical events,โค and โคcurrency fluctuations. โETFs backed by physical gold provide investors with aโ convenient wayโ to gain exposure to the gold market without the need to physically store the metal.