The Forces Driving Gold Prices Higher
Morgan Stanley's latest report forecasts that gold prices could rise to $5,700 per ounce in the second half of the year. This projection is supported by a combination of factors.
Escalating Geopolitical Risks
Amid rising geopolitical tensions and global uncertainties, gold is regaining its appeal as a safe-haven asset, attracting investors seeking protection.
Central Banks Keep Buying Gold
Despite elevated gold prices, several central banks continue to add gold to their reserves. Countries like Poland are increasing holdings, reflecting long-term confidence in the metal's value.
Strong ETF Demand
Beyond central banks, demand from gold-backed ETFs remains robust, further fueling upward pressure on prices.
Fed Policy Could Be a Catalyst
If the Federal Reserve begins cutting interest rates in 2026, it could ignite renewed interest in gold investments, supporting physical gold demand even further.