Gold rally to slow next year

Morgan Stanley has projected that gold prices will post relatively smaller gains in 2026 as purchases by central banks and exchange-traded funds moderate, although anticipated interest rate cuts and a weaker US dollar are expected to keep the broader uptrend intact. In its latest outlook, the investment bank forecast gold prices at around $4,800 per ounce by the fourth quarter, citing strong Chinese retail demand, continued, though selective, central bank buying, and global growth concerns as key supportive factors. Commenting on the report, Adnan Agar, Director at Interactive Commodities, said the outlook reflects a natural slowdown in momentum after an extraordinary rally. He noted that gold prices have nearly doubled since the uptrend began in 2024, prompting many investors to book profits after achieving returns of 50% to 100%.