Morgan Stanley Sees Gold Soaring Past $5,000 by 2027 Amid Macro Tailwinds

Morgan Stanley has reaffirmed its bullish stance on gold after it reached the bank's target price of $4,450 per ounce faster than expected. In a recent analysis, Morgan Stanley analyst Amy Gower stated that while there is scope for volatility, she sees a path to over $5,000 per ounce in 2027.

The bank attributes the resilience of gold prices to improving macro conditions, which are driving more money into gold exchange-traded funds (ETFs). Central-bank purchases and stronger physical demand are also providing support. Notably, gold has remained firm even with elevated long-term Treasury yields.

This resilience is seen as evidence that investors are increasingly hedging against fiscal risks, heavy government debt, and potential currency devaluation. Morgan Stanley expects the Federal Reserve to hold interest rates steady through the remainder of 2026, but warns that sharp swings in inflation data and Fed commentary could still occur.