Morgan Stanley: Gold prices may rise to $4,500 by mid-2026.

Morgan Stanley said on Friday that due to strong physical demand from ETFs and central banks around the world, as well as uncertain economic prospects, the price of gold is expected to rise to $4,500 per ounce by the middle of 2026. Morgan Stanley stated in a report, "The recent fluctuations in gold prices have brought it into the 'overbought' territory on relative strength index indicators, but the recent pullback has brought it back to a healthier level, possibly clearing market positions." The bank predicts that as interest rates fall, buying of gold ETFs will continue, while central banks will also continue to buy gold, although at a slower pace, and jewelry demand will stabilize. However, Morgan Stanley also warned that downside risks remain, including potential price volatility that could prompt investors to turn to other asset classes, or central banks may decide to reduce their gold reserves.