Morgan Stanley predicts a significant increase in gold prices, forecasting them to reach $4,500 per ounce by mid-2026. This prediction is driven by sustained demand from exchange-traded funds (ETFs) and central banks amid current economic uncertainty. The firm’s earlier forecast was set for the latter half of 2026. While recent price movements have pushed gold prices into an ‘overbought’ zone on the Relative Strength Index (RSI), recent corrections have stabilized prices, potentially clearing market positions. Morgan Stanley expects ETF purchases to continue as interest rates decline, central banks will maintain their gold acquisitions albeit at a slower pace while jewelry demand stabilizes. However, the firm also acknowledges potential downside risks, including possible price volatility that may prompt investors to shift towards other assets or prompt central banks to reduce their gold reserves.