Gold Prices Soar Past Morgan Stanley's $4,450 Target Ahead of Schedule

Morgan Stanley's latest research report has sparked interest in the gold market, as it forecasts that prices could surpass $5,000 per ounce by 2027. The upside path carries volatility risks.

Gold has already reached Morgan Stanley's Q4 target price of $4,450/oz, ahead of expectations. The bank attributes this to declining odds of Fed rate hikes and increasing central bank buying.

Central banks have been actively purchasing gold, with the PBOC purchasing 60 tonnes this year, marking the highest level since 2023. Poland has also increased its holdings by 82 tonnes, bringing total reserves to 632 tonnes as it nears its 700-tonne target.