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Deutsche Bank sees gold's correction as largely done, holds US$4600 Q4 target
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That reading, paired with a fair value estimate still comfortably above spot, points to limited near-term downside risk and reinforces the bank's existing bullish stance into year-end.
---Earlier:Deutsche Bank argues gold's correction has likely bottomed near $3,900/oz and reaffirms its $4,600/oz year-end forecast.
Deutsche Bank's fair value model, once adjustments for outsized official sector demand and real interest rate effects are unwound, still points to a fair value near $4,700/oz by year-end.
Second, the bank ran a regression of gold prices against its own proprietary statistical test for explosive price behaviour, known as the BSADF statistic.
Third, and most significant for the bank's near-term outlook, gold has closed the gap between spot prices and the bank's fair value model.