Morgan Stanley Predicts Gold Prices to Reach $4,500 by Mid-2026 Amid Strong Demand

According to PANews, Morgan Stanley announced on Friday that gold prices are expected to rise to $4,500 per ounce by mid-2026, driven by robust demand from ETFs and central banks, alongside ongoing economic uncertainty. Previously, the forecast was set for the latter half of 2026. The financial institution noted in a report that recent movements in gold prices have pushed them into the 'overbought' range on the Relative Strength Index (RSI), but recent corrections have brought them back to healthier levels, potentially clearing market positions. Morgan Stanley anticipates that as interest rates decline, purchases of gold ETFs will continue, with central banks maintaining their gold acquisitions, albeit at a slower pace, while jewelry demand stabilizes. However, the firm also cautioned about potential downside risks, including possible price volatility that might lead investors to shift to other asset classes or prompt central banks to reduce their gold reserves.