NEW YORK (Kashmir English): Global financial institution Morgan Stanley has predicted that gold prices could touch new heights in the coming year.
According to the report, gold is likely to reach $4,500 per ounce by mid-2026, which is currently around $4,000 per ounce.
The bank said in its latest analytical report that strong buying by exchange-traded funds (ETFs) and central banks is the main reason for the increase in gold prices.
At the same time, the ongoing global economic uncertainty has also forced investors to buy gold as a safe investment.
The report further stated that the recent rally in gold had brought it to the “overbought” zone.
However, the subsequent slight decline has made the market positioning healthier.
Morgan Stanley says that due to the reduction in interest rates, more investment is expected in gold-backed ETFs, while purchases by central banks will also continue, albeit at a slightly slower pace.
On the other hand, the bank has warned that price volatility could push investors towards other assets, which could also put pressure on prices if central banks reduce their reserves.
According to data, the price of gold has seen a 54% increase this year. In October 2025, gold reached a high of $4,381.21 per ounce, but later recorded a decline of more than 8%.
According to Morgan Stanley, this rise was possible due to geopolitical tensions, falling interest rates, and heavy investment in ETFs.
