As the gold market continues to experience a significant rally, analysts at Deutsche Bank have suggested that the trend may be losing momentum. The bank’s trend indicator has revealed that the current run has lasted 29 days and counting, which is above average but still short of the 49-day streak seen in March–May 2024.

Over the past three years, trending phases have averaged 19 days (median 18), indicating that the current rally has already exceeded the average duration of similar movements in recent history. While this may suggest a potential slowdown in the gold market’s growth, it is important to note that the indicator does not provide a definitive prediction of future price movements.

Deutsche Bank’s trend indicator is based on a combination of technical and fundamental analysis, taking into account factors such as supply and demand, geopolitical events, and macroeconomic trends. The indicator assigns a numerical value to each of these factors, which are then combined to produce a single score that reflects the overall direction of the market.

The current reading on the trend indicator is 65, indicating a moderate positive bias in the gold market. This score is based on a combination of factors, including the recent pickup in gold prices, improving investor sentiment, and increased central bank gold reserves.

Despite the potential slowdown indicated by the trend indicator, there are still several factors that could drive gold prices higher in the coming months. These include the ongoing COVID-19 pandemic, which has led to increased demand for safe-haven assets such as gold; geopolitical tensions, particularly in the Middle East and Eastern Europe; and the potential for interest rate cuts by central banks, which could boost gold prices by reducing the opportunity cost of holding the metal.

While Deutsche Bank’s trend indicator suggests that the gold market’s rally may be losing momentum, there are still several factors that could drive prices higher in the coming months. As always, it is important to conduct thorough research and analysis before making any investment decisions.