Morgan Stanley has revised its forecast for gold prices, predicting they will reach $4,500 per ounce by mid-2026, earlier than its previous estimate of the second half of 2026. The bank attributes this upward trajectory to robust physical demand from ETFs and central banks, coupled with ongoing economic uncertainty. Despite recent overbought conditions on the Relative Strength Index, a recent price pullback has stabilized the market.The bank anticipates continued investment in gold ETFs as interest rates decline, alongside sustained, though slower, central bank purchases. Jewelry demand is expected to remain stable. However, Morgan Stanley cautions about potential downside risks, including price volatility that might drive investors to alternative assets or a reduction in central bank gold reserves.