Morgan Stanley said its bullish target for gold to reach $5,200 in the second half of the year would be harder to achieve without a significant rebound in ETF inflows.
According to Odaily, Morgan Stanley analysts said that while central bank gold buying may continue, ETF flows are more sensitive to changes in interest-rate expectations. They added that the missing element is ETF demand, which may remain sensitive to the Federal Reserve’s policy path, real yields, and the U.S. dollar.
Morgan Stanley said it remains positive on gold’s long-term outlook, citing easing inflation concerns as Middle East tensions ease and oil prices fall.
The bank also noted that the Federal Reserve used relatively hawkish language at its most recent meeting, reinforcing expectations that interest rates will stay higher for longer and increasing the opportunity cost of holding non-yielding assets such as gold.
PRECIOUS METALS | Morgan Stanley Says Gold’s $5,200 Second-Half Target Needs Stronger ETF Inflows
2026-06-22 10:54:18
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