Gold Price Could Reach $4,600 by End of 2026,German Bank Predicts Amid Record Investment flows
November 28,2025 – Gold is experiencing a surge in investor interest,with inflows into gold-backed Exchange Traded Funds (ETFs) reaching a record $26 billion in the July-September period of 2025. This momentum is expected to continue, potentially driving the price of gold to $4,600 per ounce by the end of 2026, according to a recent analysis by German Landesbank Baden-Württemberg (LBBW).
The third quarter saw North American investors lead the charge with $16.1 billion in ETF investments, while European funds recorded a historical $8.2 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 their single-asset focus.
LBBW analyst Martin Siegert attributes the bullish outlook to several factors, including anticipated interest rate cuts in the US, growing skepticism regarding the independence of the US Federal Reserve (Fed), ongoing debate surrounding the future of the US dollar, and potential market disruptions stemming from US trade policy.
“Strong arguments supporting gold continued,” Siegert stated in a late November assessment, predicting continued inflows into gold ETCs.
The forecast comes as gold reached a yearly peak exceeding $4,350 in October, and traded around $4,150 as of November 27th.
This surge in gold investment isn’t limited to conventional finance. US investment bank Morgan Stanley recently recommended a significant portfolio shift, proposing a “60/20/20 model” - allocating 20% to gold products instead of the traditional 40% bond allocation in a “60/40” portfolio. Morgan Stanley’s Investment Office Director Mike Wilson described gold as a powerful asset during times of uncertainty, offering a strong hedge against inflation. the Financial Times characterized the enthusiasm as “goldplated fomo” (fear of missing out), noting the rally represents the largest increase since the 1970s.
Even the cryptocurrency sector appears to be contributing to the gold rush. Tether,a major digital asset company and issuer of the USDT stablecoin,is now developing gold-backed “Goldcoin” products and has amassed the largest private gold reserves outside of major central banks,operating from its base in El salvador.
However, not all analysts are convinced this is a sustainable trend. MKS expert Nicky Shields warns that gold is becoming a speculative tool in an overheated market. “There has been a complete bubble in the markets in the last two months, not only in gold and silver, but also in US stocks and AI assets,” Shields told DW, attributing the situation to the Fed’s interest rate cuts despite the absence of a recession, which he believes has injected excessive liquidity into the market.
Evergreen Context: Gold has historically served as a safe-haven asset during times of economic and political uncertainty. Investors often turn to gold to preserve wealth when confidence in traditional investments like stocks and bonds declines. The price of gold is influenced by factors such as interest rates, inflation, geopolitical events, and currency fluctuations. ETFs backed by physical gold provide investors with a convenient way to gain exposure to the gold market without the need to physically store the metal.