Morgan Stanley Sees Gold Prices Surging Above $5,000 by 2027

Gold prices have been on the rise in 2026, with spot gold currently holding around $4,700 an ounce after gaining over 17% in August alone. This is its best month so far this year, apart from January's 13% jump. Morgan Stanley believes there could be considerably more room to run for gold prices.

The bank sees gold breaking above $5,000 an ounce in 2027, although it expects the journey to be anything but smooth. Gold's 2026 momentum has been a classic case of two steps forward, one step back, with investors locking in profits and a stronger U.S. dollar making gold less appealing.

However, August brought the bulls back into the picture, with softer U.S. economic readings reducing expectations for another Fed rate hike. A weaker dollar added another tailwind, helping gold surge 2.82% on Aug. 19 and briefly cross $4,500.

Morgan Stanley's economists expect the Fed to remain on hold through the rest of 2026, which would keep interest rates lower and make gold more attractive. Central banks have also been adding gold to their reserves, with China adding 60 tons so far this year and Poland buying 82 tons.