Central Banks Increasing Gold Reserves Signals Price Surge Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 27 2026
0mins
Should l Buy DB?
Source: CNBC
- Rising Gold Reserves: Deutsche Bank reports that central banks have increased their gold reserves from 10% in the 1990s to 30% today, indicating a growing preference for gold as a hedge against geopolitical risks, which could drive prices higher.
- Declining Dollar Reserves: The share of U.S. dollars in foreign reserves has dropped from over 60% to 40%, suggesting a reversal of the trend seen since the 1990s, which may impact future monetary policies and market stability.
- Drivers of Gold Price Increase: Deutsche Bank analysis reveals that 80% of the increase in gold reserves is due to price appreciation rather than new purchases, yet central bank buying still significantly influences gold prices, highlighting the endogenous relationship between volume and price.
- Emerging Market Central Banks' Influence: Since the Global Financial Crisis, emerging market central banks have accounted for all gold purchases; if their foreign reserves fall to $5 trillion but they aim to hold 40% in gold, gold prices could reach $8,000 per ounce in five years, representing a potential 70% increase from current levels.
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Analyst Views on DB
Wall Street analysts forecast DB stock price to rise
13 Analyst Rating
7 Buy
5 Hold
1 Sell
Moderate Buy
Current: 31.480
Low
36.55
Averages
43.20
High
47.63
Current: 31.480
Low
36.55
Averages
43.20
High
47.63
About DB
Deutsche Bank Aktiengesellschaft is a bank and holding company for its subsidiaries. The Company offers a range of services such as investment, financial and related products and services to private individuals, corporate entities, and institutional clients. It operates through four business divisions: Corporate Bank, Investment Bank, Private Bank and Asset Management. The Corporate Bank division serves corporate clients and financial institutions, offering cash management, trade finance, lending, foreign exchange, trust and agency services, correspondent banking, and securities services. The Investment Bank division includes Fixed Income & Currencies (FIC) Sales & Trading, Origination & Advisory, and Deutsche Bank Research. The Private Bank division focuses on personal and private clients, wealthy individuals, entrepreneurs and families. The Asset Management division operates under the brand DWS, and it serves a diverse client base of retail and institutional investors worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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