Gold Prices May Soar Past $5,000 by 2027 Amid Weaker Dollar and Central Bank Buying

Morgan Stanley predicts that gold prices may exceed $5,000 per ounce by 2027 due to factors like weaker dollar, central bank purchasing, and ETF inflows. The investment bank's analyst Amy Gower said gold has 'reached our Q4 forecast of $4,450/oz faster than expected' and sees a trajectory to above $5,000/oz in 2027. However, she also cautioned that the path will probably remain volatile.

The spot gold price rose above $4,500 per ounce this week, touching $4,525.79, its highest level since June 2. The advance followed a gain of more than 4% on August 19, helped by declining U.S. Treasury yields after the Treasury Department announced larger long-dated bond buybacks.

Morgan Stanley noted that gold has increasingly decoupled from long-term real Treasury yields. The metal climbed in early August even as long-dated yields remained high, a pattern suggesting investors are focused more on fiscal concerns driving yields than on yield levels alone.