Prices have held firm after a series of volatile sessions, with last week’s moves ranging between 4,074 and 4,218 dollars, as investors continued to rotate back into precious metals.
Morgan Stanley calls gold its top pick across the commodities complex and expects the backdrop to stay supportive into 2026.
The bank points to a decisive shift in investor behaviour this year, with ETFs reversing four years of net selling and adding the largest tonnage since 2020.
It expects that demand to continue as interest rates fall, while central banks keep adding to reserves and jewellery consumption shows early signs of stabilising.
The bank says demand for real assets has also strengthened as investors reassess portfolio hedges against inflation risks and economic uncertainty.
With that backdrop in mind, Morgan Stanley views the latest dip in prices as an entry point and holds a mid-2026 forecast of 4,500 dollars per ounce.
Risks include further bouts of volatility that could divert flows to other asset classes, or any shift by central banks toward reducing reserves.
Silver is also on Morgan Stanley’s radar, with the market likely to remain in deficit and prices expected to stay close to record territory.
By Dave Taylor
Source: Exchange Rates UK
