Gold Price Pullback Meets Strong Demand as Morgan Stanley Sees $5,000 Gold and $120 Silver

• Gold price remains under pressure despite firm gold demand, while the silver price outlook and Morgan Stanley’s gold forecast keep the metals market in focus
• Central-bank purchases and gold ETF inflows continue to support gold despite higher Treasury yields
• Morgan Stanley’s Amy Gower expects gold to move above $5,000 in H2 2027, while silver could reach $120

Gold price has been encountering a bit of volatility as of late. Gold price has declined recently, pulling back from its recent highs, but the gold demand continues to stay firm. Gold was trading at around $4,180/ounce on September 30, after gaining 1.6% the previous day. The higher US Treasury yields continued to put pressure on the asset. However, the recent pullback is yet to dent the rising gold demand. Gold-backed ETFs are continuing to attract money, alongside central banks continuing to add gold to their reserves. Morgan Stanley has now predicted a new outlook for the asset, with gold price moving above $5K and silver price reaching $120.

Also Read: Apple vs. Amazon Stock as Rosenblatt Sees $303 AAPL and $360 AMZN

Gold Demand Holds Despite Recent Pullback

The current gold price move comes at a time when the markets are reassessing the outlook of US interest rates. The 30-year Treasury yield recently climbed for six consecutive sessions, reaching its highest level since 2002. This development is also weighing on gold, impacting its price. Lower oil prices have eased some concerns about energy-driven inflation; however, gold demand is continuing to remain stable for now.

Central banks are continuing to buy gold, sustaining the long-term gold demand. Goldman Sachs estimates that central banks purchased nearly 44 tonnes in July 2026. US-listed gold ETFs have also attracted $3.8B in September, per MarketWatch data. The ETFs accumulated nearly $7.9B in inflows in August, signalling continued investor demand for gold.

The ETF factor is particularly important to gauge the future gold price and demand. These metrics correspond to how strongly gold may respond to changes in interest rate expectations.

Also Read: Standard Chartered Sees Ethena at $2, USDe at $40B by 2028

Morgan Stanley Sees Gold Price Hitting $5000 and Silver $120

The latest gold price forecast by Morgan Stanley has set bullish expectations for the metal sector. Morgan Stanley’s Amy Gower expects gold price to move back above $5,000 in H2 2027. She further added that continued ETF and central bank demand may help the asset gain more momentum.

This outlook is also impacting the silver price momentum. Alongside the bullish gold forecast, Gower shared that the silver price could reach $120.

“We do see upside to gold on a 12-month view. We do see the price moving back above $5,000 an ounce by the second half of 2027, so we would say, on these pullbacks, we would be looking to add to gold positions.”

For now, the gold price remains stuck in the middle of two macroeconomic forces. The higher yields are stressing the metal at the moment, while ETF and central bank buying sprees continues to bolster the asset’s demand.

Also Read: Robinhood Targets US Crypto Traders With 10x Leverage and AI-Powered Trading