During a recent Bloomberg TV interview, Morgan Stanley’s Metals and Mining Commodities Strategist Amy Gower said gold could reach $3,400 per ounce in 2025.
Gower pointed to two main drivers behind the metal’s strength. The first is sustained physical demand, which gained momentum in 2022 when central banks around the world stepped up gold purchases as part of reserve diversification strategies. Those institutional purchases created a steady foundation of demand that has supported prices.
The second driver is a more recent surge in investor interest. Increased allocations from funds and individual investors have amplified price moves, accelerating gains alongside central-bank buying. Morgan Stanley’s view is that the combination of persistent physical accumulation and growing investor demand should maintain upward pressure on bullion into 2025.
Gower’s forecast reflects broader market dynamics: when central banks accumulate reserves and investors seek safe-haven or portfolio-diversifying assets, supply-demand imbalances tend to push prices higher. While forecasts are inherently uncertain, the dual tailwinds of strategic reserve purchases and renewed investor appetite are central to Morgan Stanley’s bullish outlook for gold.
Investors considering exposure to precious metals should weigh this outlook against their own risk tolerance and investment horizon. Physical holdings, exchange-traded funds, and futures each carry different cost, liquidity, and storage considerations. Keeping an eye on central-bank activity, macroeconomic indicators, and shifts in investor positioning can help contextualize price moves as the market evolves toward 2025.
In short, Morgan Stanley’s analysis emphasizes that sustained central-bank buying combined with accelerating investor demand are the key factors supporting a potential run toward $3,400 per ounce within the next year.