Why gold in 2026? Australia's macro shifts and the case for gold
The price of gold has decreased by 5% since February 27 due to various factors, including a strong US dollar and liquidation of gold holdings. Despite this, Morgan Stanley still sees a bull case for gold in the second half of 2026, driven by central bank buying and Fed rate cuts.
The price of gold has pulled back from record highs due to the war in Iran and a strong US dollar. Central banks are selling as well as buying gold, and logistical issues in the Middle East will influence the price. Oil-driven inflation and geopolitical uncertainty are also factors. Morgan Stanley notes that gold typically re-establishes its status as a hedge against uncertainty after a wash-out. The analysts still see a bull case for gold, but acknowledge recent events bring more focus on downside risks.
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