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Deutsche Bank Makes Bold Move to Reclaim Its Place in Elite Gold Trading Circle

MarketDash Editorial Team
15 days ago
After pulling out of physical gold trading a decade ago, Deutsche Bank is riding a $100 million windfall back toward the exclusive club of London's top bullion dealers.

Deutsche Bank (DB), Germany's largest lender, is making a serious push to rejoin the inner circle of global gold trading after stepping away more than a decade ago. And they're doing it with momentum on their side.

The bank generated over $100 million in gold-trading revenue during the first half of the year, according to reports. Tariff-driven chaos and arbitrage opportunities created the perfect opening for an institution that had mostly exited physical gold trading back in 2014.

Now Deutsche Bank wants back in. Specifically, it's applying to rejoin the select group of 11 banks that form the London Bullion Market through the London Bullion Market Association. That's the elite club that essentially runs the show in precious metals.

Getting approved won't be automatic. The bank would face a probationary period where it has to provide two-way quotes throughout trading hours, proving it can handle the responsibility. If successful, Deutsche Bank could eventually pursue full clearing-bank status, a position currently being chased by Citigroup and Morgan Stanley. Reentering London's core gold infrastructure would represent both a symbolic and operational win for a bank that's spent years rebuilding its reputation.

The Long Road Back

Deutsche Bank's 150-year history includes some spectacular stumbles, especially after the 2008 financial crisis. The bank racked up multi-billion-dollar penalties for mis-selling U.S. mortgage securities and paid a $600 million fine for money-laundering violations.

It gets worse. Deutsche Bank paid the industry's largest single fine in the Libor and Euribor manipulation cases, plus additional penalties for violating the U.S.–Iran embargo. Ties to Jeffrey Epstein and entanglement in Danske Bank's illicit-flows scandal piled on more reputational damage. By 2020, all those controversies and losses had shrunk the bank's market capitalization to roughly €16 billion ($18.4 billion), a fraction of what it once commanded.

But steady restructuring under CEO Christian Sewing has been paying dividends. The bank has sharpened its focus on metals trading while expanding revenue from fixed income and currencies. Still, to fully rejoin the center of the London market, Deutsche Bank must demonstrate consistent liquidity provision, robust compliance, and solid operational capabilities. Only then will it earn its way back into the "inner circle" it left behind.

Why Gold, Why Now

With persistent momentum in the precious metals market, management has good reason to push hard for reentry. Deutsche Bank's analysts argue that official-sector buying from central banks, not financial market flows, is what's keeping gold prices elevated. If central bank buying continues, it could establish a solid floor under bullion prices.

Deutsche Bank is currently sticking with its September forecast of $4,000/oz for 2026. That's notably more conservative than peers like Goldman Sachs or Bank of America, which project gold hitting $4,900 to $5,000/oz.

Whatever the eventual price target, the bank is already enjoying the ride. Deutsche Bank's stock is up 74.81% year-to-date, a remarkable turnaround for an institution that many had written off just a few years ago.

Back to News

Deutsche Bank Makes Bold Move to Reclaim Its Place in Elite Gold Trading Circle

MarketDash Editorial Team
15 days ago
After pulling out of physical gold trading a decade ago, Deutsche Bank is riding a $100 million windfall back toward the exclusive club of London's top bullion dealers.

Deutsche Bank (DB), Germany's largest lender, is making a serious push to rejoin the inner circle of global gold trading after stepping away more than a decade ago. And they're doing it with momentum on their side.

The bank generated over $100 million in gold-trading revenue during the first half of the year, according to reports. Tariff-driven chaos and arbitrage opportunities created the perfect opening for an institution that had mostly exited physical gold trading back in 2014.

Now Deutsche Bank wants back in. Specifically, it's applying to rejoin the select group of 11 banks that form the London Bullion Market through the London Bullion Market Association. That's the elite club that essentially runs the show in precious metals.

Getting approved won't be automatic. The bank would face a probationary period where it has to provide two-way quotes throughout trading hours, proving it can handle the responsibility. If successful, Deutsche Bank could eventually pursue full clearing-bank status, a position currently being chased by Citigroup and Morgan Stanley. Reentering London's core gold infrastructure would represent both a symbolic and operational win for a bank that's spent years rebuilding its reputation.

The Long Road Back

Deutsche Bank's 150-year history includes some spectacular stumbles, especially after the 2008 financial crisis. The bank racked up multi-billion-dollar penalties for mis-selling U.S. mortgage securities and paid a $600 million fine for money-laundering violations.

It gets worse. Deutsche Bank paid the industry's largest single fine in the Libor and Euribor manipulation cases, plus additional penalties for violating the U.S.–Iran embargo. Ties to Jeffrey Epstein and entanglement in Danske Bank's illicit-flows scandal piled on more reputational damage. By 2020, all those controversies and losses had shrunk the bank's market capitalization to roughly €16 billion ($18.4 billion), a fraction of what it once commanded.

But steady restructuring under CEO Christian Sewing has been paying dividends. The bank has sharpened its focus on metals trading while expanding revenue from fixed income and currencies. Still, to fully rejoin the center of the London market, Deutsche Bank must demonstrate consistent liquidity provision, robust compliance, and solid operational capabilities. Only then will it earn its way back into the "inner circle" it left behind.

Why Gold, Why Now

With persistent momentum in the precious metals market, management has good reason to push hard for reentry. Deutsche Bank's analysts argue that official-sector buying from central banks, not financial market flows, is what's keeping gold prices elevated. If central bank buying continues, it could establish a solid floor under bullion prices.

Deutsche Bank is currently sticking with its September forecast of $4,000/oz for 2026. That's notably more conservative than peers like Goldman Sachs or Bank of America, which project gold hitting $4,900 to $5,000/oz.

Whatever the eventual price target, the bank is already enjoying the ride. Deutsche Bank's stock is up 74.81% year-to-date, a remarkable turnaround for an institution that many had written off just a few years ago.