Gold Holds Firm Above $4,000 as Morgan Stanley Sees $5,000 Target

Gold has been facing challenges in recent times, including '20-year highs' in long-dated bond yields and a resilient US dollar. These macro pressures have triggered a shift in sentiment that led to a swift washout of short-term algorithmic positions built during late-summer rallies.

Despite these headwinds, gold has maintained a firm floor above $4,000 per ounce. According to Amy Gower, head of metals and mining strategy at Morgan Stanley, this resilience signals that structural, long-term drivers remain intact.

Gower noted in an interview with CNBC that 'there are still lots of reasons to have gold' in your investment portfolio. One key driver is sustained global physical buying by central banks, particularly in China and Poland, which continue to accumulate reserves to diversify away from foreign fiat currencies.