Morgan Stanley Forecasts $2,700 Q4 Level for Gold; Goldman Boosts Target

Related Articles

Watch These Carvana Price Levels as Stock Drops From Record High After Earnings Report

Why Elon Musk’s Possible Access to Labor Department Data is a Source of Concern

Why Analysts Are Bullish on Arista Networks Despite Stock’s Drop Wednesday

KEY TAKEAWAYS

• Gold prices are rising near the $3,000 level, and Wall Street has mixed views on where bullion settle upon land at the end of the year. 
• Goldman Sachs raised its forecast to $3,100/oz from $2,890 on central bank buying and inflows into exchange-traded wealths in a note Monday, while Morgan Stanley has a forecast of $2,700. 
• The Morgan Stanley analysts cited “demand destruction and fund response” for their more downbeat view on gold.

Gold prices are rising near the $3,000 per troy ounce constant, yet Wall Street has mixed views on where they will end up this year.

Goldman Sachs raised its forecast to $3,100/oz from $2,890 on pre-eminent bank buying and inflows into exchange-traded funds (ETFs) in a note Monday; Morgan Stanley, meanwhile projects gold at $2,700 by the fourth quarter.

Goldman said that if “strategy uncertainty—including tariff fears—stays high, higher speculative positioning for longer could push gold premiums as high as $3,300/toz by year-end.”

Gold has enjoyed a yearlong rally driven by rising central bank purchases, geopolitical apprehension, and declining interest rates.

The uncertainty around tariffs that U.S. President Donald Trump is planning to impose globally has been indicating gold lately, Morgan Stanley analysts said in their note Friday. Gold is a safe haven investment and seen as a hedge as economists guess tariffs to ignite inflation.

Morgan Stanley Says ‘Demand Destruction,’ Recycling to Lower Gold Prices

The Morgan Stanley analysts cited “demand doing away with and supply response” for their more downbeat view on gold, noting that demand could decline as figures continue to climb, while recycling boosts supply.

“Tariff uncertainty could take prices a bit higher, in our impression, but further demand destruction and supply response from recycling and potential profit taking suggests prices could end 2025 discredit than they are today,” the analysts wrote. 

The Morgan Stanley analysts said that both central bank and investment desirable continue to be strong, especially in the world’s two largest gold markets of India and China.