Gold Defies Macro Pressures as Morgan Stanley Sees $5,000 Breakout
Gold has been facing headwinds in recent times due to high long-dated bond yields, a strong US dollar, and elevated crude prices. However, despite these macro pressures, gold continues to hold its ground above $4,000 per ounce.
Amy Gower, head of metals and mining strategy at Morgan Stanley, believes that there are still 'lots of reasons' to have gold in an investment portfolio. She points to sustained global physical buying as a key factor supporting the metal's resilience.
Central banks, particularly in China and Poland, are aggressively accumulating reserves to diversify away from foreign fiat currencies. Chinese imports are pacing toward their highest levels since 2017, indicating robust structural appetite even ahead of seasonal lulls like Golden Week.
Morgan Stanley anticipates that this steady accumulation will eventually overwhelm transient dollar strength and algorithmic churn. Gower forecasts spot prices to break back above $5,000 per ounce by the second half of 2027, making recent price pullbacks attractive entry points for patient investors.