Gold to Hit $2,700 as Central Bank Demand Surges: Morgan Stanley
New York – June โค8,โข 2025 – Morganโฃ stanleyโ forecasts gold prices will surge โto $2,700 per ounce โขwithin the next โ12 months, citing robust demand fromโ global central banks and escalating geopolitical risks. โThe investment bank’s revised target, representing a โmore than 8% increase from current levels, reflects a growing conviction that gold’s safe-haven appeal will continue to drive prices higher.
This bullish outlook arrives as central banks worldwide are aggressively accumulating gold reserves, a trend fueled by diversification efforts and aโข desire to reduce reliance on the U.S. dollar. Coupled with ongoing geopolitical tensions and expectations ofโฃ potentialโ interest rate โฃcutsโค by the federal Reserve, these factors are creating โa potent cocktail for gold’s continued ascent. โThe price rally has โalready been โฃsignificantly boosted by significant โคpurchases โฃfrom central banks and โฃconsistent inflows into gold-based Exchange โคTraded Funds โ(ETFs).
Morgan Stanley analystsโฃ point to the sustained buying by central banks as aโ key driver, noting a shift in global monetary policy towards de-dollarization. This strategic โฃmove byโข nations to hold option reserve assets isโ bolstering gold’s essential value. โค Furthermore, the anticipation of โinterest rate reductions later this year is expected to diminishโ the opportunity cost ofโ holding non-yielding assets like gold, further stimulating investment.
Gold has historicallyโข served as a hedge against โคinflation and economic uncertainty,and its performance โin recent months underscores โขthis role. โAs ofโข June 8, โ2025, gold is trading โขnear record highs,โ benefiting from a weakening dollar and increased risk โฃaversion in global markets. Investors areโค closely monitoringโข centralโ bank activity and geopolitical developments for further clues about the metal’s โขtrajectory.
