Morgan Stanley said gold could rise above $5,000 per ounce by 2027, or even earlier, after breaking through $4,450 an ounce. The bank linked its outlook to stronger demand for gold exchange-traded funds as expectations for further Federal Reserve rate hikes fade and the U.S. dollar weakens. It also pointed to continued heavy buying by central banks and firmer physical demand as key supports for the metal. Despite elevated long-term yields, Morgan Stanley said gold has remained resilient, which it sees as a sign that investors are growing more concerned about fiscal risks, including high government debt and the possibility of currency debasement. The bank expects the Federal Reserve to keep interest rates unchanged through 2026, while warning that upcoming U.S. inflation data and remarks from Fed officials could increase market volatility.
According to BlockBeats, Morgan Stanley said on Aug. 20 that after gold moved above $4,450 per ounce, the metal could climb past $5,000 an ounce by 2027, or sooner.
The bank said an improving macro backdrop is lifting demand for gold exchange-traded funds as expectations for additional Federal Reserve rate hikes continue to fade and the U.S. dollar weakens. Morgan Stanley also said strong buying from central banks and firmer physical demand are adding support to gold prices.
It added that gold has stayed firm even with long-term yields at elevated levels, which the bank said points to rising investor concern over fiscal risks, including high government debt and potential currency debasement.
Morgan Stanley expects the Federal Reserve to leave rates unchanged through 2026. At the same time, it warned that upcoming U.S. inflation data and comments from Fed officials could add to market volatility.
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