Morgan Stanley CIO: Gold Enters 25th Year of Bull Market

Gold prices surged nearly 1% on Monday as Morgan Stanley's Chief Investment Officer Mike Wilson stated that gold has been in a bull market for 25 years. According to Wilson, gold is not a speculative move but part of a long-term trend.

In an interview with Bloomberg TV, Wilson said investors are seeking commodity-like assets to hedge equity risk and offer lower correlation to stocks. He noted that traditional 60/40 portfolios have been losing on both the defensive and offensive sides, causing investors to look for alternative ways to strengthen their portfolios.

Wilson suggested that investors could reduce duration in fixed income holdings while preserving diversification benefits. Morgan Stanley has long viewed gold as a defensive asset rather than a yielding instrument.

The Federal Reserve's rate expectations and PMI data are seen as the next key catalysts for rate expectations and gold prices. The firm's commodity strategists have previously cautioned that without a meaningful recovery in gold ETF inflows, the metal will struggle to reach its $5,200-an-ounce target for the second half of 2026.