Gold futures reclaimed the $4,000 price level on Thursday as layoffs in October totaled 153,074, marking the highest number of job cuts for the month since 2003 and further stoking fears of economic uncertainty. That led to the odds of a 25 bps rate cut at the December Federal Open Market Committee (FOMC) meeting rising to 69.9% compared to 62% a day ago.
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Lower interest rates benefit the precious metal since it doesn’t yield interest, making gold’s investment rationale more attractive compared to interest-bearing assets.
Morgan Stanley Sets 2026 Gold Price Target of $4,400
Morgan Stanley has a 2026 gold price target of $4,400, although the bank believes that it could rise to $4,500 by the middle of the year on strong ETF demand and continued purchases from central banks.
“Recent price action took gold well into ‘overbought’ territory on an RSI (Relative Strength Index) basis, but the recent correction has taken it to a healthier level, likely cleaning up positioning,” said Morgan Stanley.
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