Both the rising inflation expectations and the status ascribed to gold as a "safe haven" are currently causing prices to test new highs. Strategists at Deutsche Bank expect XAU/USD to advance nicely towards $2,100 by end-March 2023.

Rising inflation expectations and geopolitics will attract further investors to gold

“Were it not for the war in Ukraine, gold could likely have come under pressure due to the expected Fed rate hikes.” 

“With central banks possibly acting more cautiously and inflation expectations rising at the same time, real interest rates in many industrialised countries are likely to remain in deeply negative range for quite some time.” 

“Inflation and geopolitical risks will keep attracting investors towards the yellow metal. This should support the gold price, which we forecast at $2,100/oz at end-March 2023.”