Morgan Stanley Sees $4,000 Gold Floor Amid Strong Demand

Morgan Stanley's metals strategist Amy Gower shared her bullish view on gold prices, citing three key factors that could keep the metal supported. In an interview with CNBC's Squawk Box Europe, Gower mentioned persistent physical demand as one of the reasons she believes gold has a floor at $4,000.

Central banks and China have been major drivers of this demand. Central banks bought 23 metric tons of gold in July, while China alone added around 20 tons. This is part of a broader trend, with Chinese gold imports exceeding 1,000 tons during the first eight months of 2026 - a pace that could lead to its strongest year since at least 2017.

Gower's second point was the possibility of lower long-term bond yields. She noted that the US 10-year Treasury yield recently surged above 5.3%, making interest-bearing government debt more competitive with gold, which provides no yield. A decline in oil prices could also ease inflation pressure and reduce the Federal Reserve's need to tighten further.

This is not the first time Morgan Stanley has expressed its bullish view on gold. The firm previously lifted its 2026 forecast to $4,400 due to central-bank purchases, ETF buying, and macro uncertainty supporting demand.