More Glitter, Gold Prices Are Predicted To Soar To US$4,500 Per Ons Next Year!

Antam gold illustration (ANTARA)

JAKARTA - Global investment bank Morgan Stanley estimates that the gold price can penetrate the US$4,500 per ounce by mid-2026. The prediction is driven by increased demand for gold from central banks and gold-based investment funds (ETF) amid the uncertainty of the world economy.

"Gold price movements have recently entered the overbought zone based on the relative strength index (RSI) indicator, but the final correction makes it healthier and reorganizes the market position," Morgan Stanley wrote in a report. quoted from Reuters, Sunday 2 November.

Morgan Stanley estimates that ETF's purchase of gold will continue to increase along with the trend of decreasing global interest rates. On the other hand, the central bank is predicted to continue to purchase gold, even though it is in a more moderate pace. The demand for gold for jewelry is expected to be stable in the near future.

However, Morgan Stanley also reminded that the potential price decline still exists. Market volatility and changes in central bank monetary policy could trigger investors to move to other assets or reduce gold reserves.

Throughout 2025, gold prices have risen more than 54%, breaking a record high of US$ 4,381.21 per ounce on Monday (20/10/2025) before correcting more than 8%.

This gold price rally was triggered by geopolitical tensions, expectations of rate cuts, massive purchases by the central bank, and strong funding flows to gold-based ETFs.