Gold Price Outlook: Morgan Stanley Predicts $2,700, Goldman Sachs Sees Higher Potential
Explore the latest expert forecasts on gold prices as Morgan Stanley anticipates a $2,700 level by Q4, while Goldman Sachs raises its target to $3,100 amid central bank buying and ETF inflows.
Key Insights on Gold Price Projections
- Gold prices are approaching the $3,000 per ounce mark, with Wall Street analysts divided on the year-end outlook.
- Goldman Sachs increased its forecast to $3,100 per ounce from $2,890, citing strong central bank purchases and rising ETF investments.
- Morgan Stanley projects a more conservative $2,700 per ounce by Q4, highlighting demand reduction and increased supply from recycling.
Gold is currently trading near the $3,000 per troy ounce level, reflecting a dynamic market influenced by various economic factors. While Goldman Sachs anticipates prices climbing to $3,100 per ounce, Morgan Stanley offers a tempered forecast of $2,700 by the fourth quarter.
Goldman Sachs emphasized that ongoing policy uncertainties, including tariff concerns, could sustain higher speculative interest, potentially driving prices up to $3,300 per ounce by year-end.
The year-long rally in gold prices has been fueled by increased central bank acquisitions, geopolitical tensions, and falling interest rates, reinforcing gold’s status as a safe-haven asset.
Morgan Stanley Highlights Demand Challenges and Recycling Impact
Morgan Stanley analysts point to "demand destruction and supply response" as key factors tempering their outlook. They suggest that rising prices may curb demand while boosting supply through increased recycling.
According to their analysis, tariff uncertainties might push prices slightly higher in the short term, but ongoing demand erosion and supply from recycled gold could result in lower prices by the end of 2025.
Despite these challenges, both central bank and investment demand remain robust, particularly in major gold markets like India and China.
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